Question
Compute lower and upper arbitrage-free price bounds of a European put option with strike $20 and a remaining time to maturity of 3 months. The
Compute lower and upper arbitrage-free price bounds of a European put option with strike $20 and a remaining time to maturity of 3 months. The current spot price is $19. Assume that the risk-free interest rate is 1% p.a.(with continuous compounding).
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