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Consider American options for a non-dividend paying asset. Prove that St K C(K,T)P(K,T) where St is the spot price of the underlying asset at time
Consider American options for a non-dividend paying asset. Prove that St K C(K,T)P(K,T) where St is the spot price of the underlying asset at time t, C(K,T) is the price of the American call option with strike price K and maturity T, and P(K,T) is the price of the American put option with strike price K and maturity T . The interest rate is positive.
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