Prove that for a European Call option on an asset that pays no dividends the following relations
Question:
Prove that for a European Call option on an asset that pays no dividends the following relations hold:
\[C \leq S, \quad C \geq S-E \exp (-r(T-t))\]
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We can prove the two relations for a European Call option C on a nondividendpaying asset with current price S strike price E riskfree interest rate r ...View the full answer
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Related Book For 
Quantitative Finance
ISBN: 9781118629956
1st Edition
Authors: Maria Cristina Mariani, Ionut Florescu
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