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Consider a call option with strike price K and maturity T. The annualized riskless rate is r>0. Demonstrate that the call price satisfies inequality C>S-K/(1+r)^T,

Consider a call option with strike price K and maturity T. The annualized riskless rate is r>0. Demonstrate that the call price satisfies inequality C>S-K/(1+r)^T, where S is the stock price. Hint: use the put-call parity.

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