Exercise 8.4.5 Assume that the underlying stock does not pay dividends. Supply arbitrage arguments for the following

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Exercise 8.4.5 Assume that the underlying stock does not pay dividends. Supply arbitrage arguments for the following claims. (1) The value of a call, be it European or American, cannot exceed the price of the underlying stock. (2) The value of a European put is PV(X) when S = 0. (3) The value of an American put is X when S = 0.

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