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4. Use put-call parity to derive the fair price of an European put option P(t, S, E). Check the boundary condition lim P(t, S, E)
4. Use put-call parity to derive the fair price of an European put option P(t, S, E). Check the boundary condition lim P(t, S, E) = Ee-rt S+0+ and explain its financial meaning. 4. Use put-call parity to derive the fair price of an European put option P(t, S, E). Check the boundary condition lim P(t, S, E) = Ee-rt S+0+ and explain its financial meaning
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