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2. Suppose the price of an European option on a certain stock is f where f = c for call and f = p for

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2. Suppose the price of an European option on a certain stock is f where f = c for call and f = p for put. Show by substituting for the various terms in the equation, 6+rsA + o2sr = rf, that the equation holds for: (a) A single European call option on a certain stock. (b) A single European put option on a certain stock. 2. Suppose the price of an European option on a certain stock is f where f = c for call and f = p for put. Show by substituting for the various terms in the equation, 6+rsA + o2sr = rf, that the equation holds for: (a) A single European call option on a certain stock. (b) A single European put option on a certain stock

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