The lower bound of the call option premium is the greater of zero and the difference between the spot rate and the exercise price; the upper bound of a currency call option is the spot rate.

Question

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The lower bound of a call option is the greater of zero and the difference between the spot rate and the exercise price, while the upper bound is the spot rate, as the option cannot be worth more than the underlying asset itself.

The Lower Bound of the Call Option Premium Is the Greater