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Category > Business & Finance Posted 25 May 2017 My Price 5.00

Let P be the price of a put option to sell a security

Exercise 5.8 Let P be the price of a put option to sell a security, whose present price is S , for the amount K . Argue that

P ≥ Ke − rt − S ,

where t is the exercise time and r is the interest rate.

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Alpha Geek
(8)
Status NEW Posted 25 May 2017 12:05 PM My Price 5.00

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file 1495715672-Answer.docx preview (136 words )
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