The lower bound on a call's value is either the:

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The lower bound on a call option's value is the maximum of zero and the difference between the stock price and the exercise price. This is intuitive since the option holder would only exercise the call option if they could earn a profit, and they can only earn a profit if the stock price is greater than the exercise price. Therefore, the minimum value of the call option is zero, and it increases as the stock price increases relative to the exercise price.

The Lower Bound on a Call's Value Is Either The