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Assume you hold a long (European) call on stock-A with strike K and cash of KeT in a risk- free bank deposit (or a zero-coupon
Assume you hold a long (European) call on stock-A with strike K and cash of KeT in a risk- free bank deposit (or a zero-coupon bond). Explain how this portfolio can result in a minimum value of K at maturity of the call option. Link your result to the put-call parity condition (for European) options.
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