The lower bound for the price of a European call option is given by max[0, S(0) - K*exp(-rT) - D]. The lower bound for the price of a European put option is given by max[0, K*exp(-rT) - S(0) + D], where D is the lump-sum PV of the dividend. Where q is the continuous dividend, the lump-sum D= -S(0)*(EXP(-q*T)-1).
David's XLS is here: https://www.dropbox.com/s/d7gwdbqjnlcn25u/100318-euro-option-lower-bounds.xlsx
David's XLS is here: https://www.dropbox.com/s/d7gwdbqjnlcn25u/100318-euro-option-lower-bounds.xlsx
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