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3. The current price of a stock is 25. LetC(S, K, T) and P(S., K, T) be European calls and puts respectively on the stock

3. The current price of a stock is 25. LetC(S, K, T) and P(S., K, T) be European calls and puts respectively on the stock with strike price K and expiry T. Which of the following statements are true? (a) P(S, 25, T) 2 25e-5T - 25e-8T (b) P(S, 25, T) -C(S, 20,T) > 20e-rT - 25e-8T (c) P(S, 25, T) -C(5,20,7) > 25e-T ST 25e-8T

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