Show that the following is an lower bound on a put price where (P_{t}) is the current

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Show that the following is an lower bound on a put price image text in transcribed

where $P_{t}$ is the current put price, $K$ is the exercise price, $r$ is the risk free interest rate, $(T-t)$ is the time to maturity and $S_{t}$ is the current price of the underlying security.

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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Question Posted: May 21, 2024 03:03 AM

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Show that the following is an lower bound on a put price where (P_{t}) is the current

Question:

Pt K (1+r)(T-t) St

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Lectures On Corporate Finance

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