Put Upper bound 5 Show that the following is an upper bound for the price of a put option P K (1 r)(T ) where Pt 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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Put Upper bound [5] Show that the following is an upper bound for the price of a

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Put Upper bound [5]

Show that the following is an upper bound for the price of a put option P <

* - (1+ r)(T

~*)

where Pt 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: B00RGENH5I

1st Edition

Authors: Peter L Bossaerts ,Bernt Arne Odegaard

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Question Posted: Oct 25, 2024 06:00 AM

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Put Upper bound [5] Show that the following is an upper bound for the price of a

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Lectures On Corporate Finance

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