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(a) Prove that the plus-part function satisfies: [x]+ - [-x] = x for any number X. (b) Apply the identity in part (a) to
(a) Prove that the plus-part function satisfies: [x]+ - [-x] = x for any number X. (b) Apply the identity in part (a) to the payoff values of European-style Call and Put options for S at strike price K and expiry T to show: C(T) - P(T) = S(T) - K
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a To prove that the pluspart function satisfies x x x for any number x we can consider two cases Cas...
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
