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7. (20 pts) Suppose the price of a non-dividend paying stock is $100 today and the continuous compounding interest rate is r = 7%. (7a)

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7. (20 pts) Suppose the price of a non-dividend paying stock is $100 today and the continuous compounding interest rate is r = 7%. (7a) (10 pts) Find the range for the price of an American put with strike price X = 110 and expiry time T = 2. (7b) (10 pts) Suppose that the price of an European call with strike price X = 110 and expiry time T = 2 is $6, find the range for the price of an American put with the same strike price X and expiry time T

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