Show that, if C is the price of an American call with strike price K and maturity T on a stock providing a dividend yield of q, and P is the price of an American put on the same stock with the same strike price and exercise date, then Soe KC-P 0. (Hint: To obtain the first half of the inequality, consider possible values of: Portfolio A: a European call option plus an amount K invested at the risk-free rate Portfolio B: an American put option plus ea of stock with dividends being reinvested in the stock To obtain the second half of the inequality, consider possible values of: Portfolio C: an American call option plus an amount Ke invested at the risk-free rate Portfolio D: a European put option plus one stock, with dividends being reinvested in the stock.)

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