8.18. Prove the result in equation (8.8). (Hint: For the first part of the relationship consider (a)
Question:
8.18. Prove the result in equation (8.8). (Hint: For the first part of the relationship consider
(a) a portfolio consisting of a European call plus an amount of cash equal to D+ X and
(b) a portfolio consisting of an American put option plus one share.)
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