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Consider two six-month American puts at strikes 90 and 100. The risk-free rate is 2%. The difference between the two put prices at any time
Consider two six-month American puts at strikes 90 and 100. The risk-free rate is 2%. The difference between the two put prices at any time before maturity will always be
A. | Greater than $10.
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B. | Less than $10.
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C. | Equal to $10.
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D. | One cannot be sure of which of the preceding three choices is valid and more information may be required. |
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