Advanced Option Pricing

A5. Consider the American option (ft):[0,1] = (St Sydu)te[0,11 with maturity date T. Write out the free-boundary PDE and variational inequalities for the price of the American option at time t (0,T). No justification is needed. (Hint: You may refer to the pricing PDE for Asian options.) A5. Consider the American option (ft):[0,1] = (St Sydu)te[0,11 with maturity date T. Write out the free-boundary PDE and variational inequalities for the price of the American option at time t (0,T). No justification is needed. (Hint: You may refer to the pricing PDE for Asian options.)