Show that the following is an upper bound for the price of a put option where (P_{t})

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Show that the following is an upper bound for the price of a put optionimage text in transcribed

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

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Lectures On Corporate Finance

ISBN: 9789812568991

2nd Edition

Authors: Peter L Bossaerts, Bernt Arne Odegaard

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