# Call price in case of AOA

I have this exercice, and for the last question, i tried to say that with lower bound, $$C > S_0 - Ke^{-rT}$$ which is $$-8$$ something but it doesn't make sense so i don't know what to do. Could we just say that under risk-neutral probabilities, price of call is $$0.5*5*e^{-rT}$$ , as $$S_0$$ should be the expected value of $$110$$ and $$90$$ in $$t_1$$ with $$p = 0.5$$ for example ?

A call struck at $$100$$ costs $$2.97$$, therefore a call with a strike higher than $$100$$ must cost less than $$2.97$$.
• The 110 Call pays less than the 100 Call in every situation in which $S_T>100$, and they both pay nothing for $<=100$. So 100 call is worth more by AOA. – Alex C Nov 27 '19 at 19:12