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Exercise 5. We have the following two results from Chapter 10. Properties of options. (1) American put-call parity. The American put and call options (strike

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Exercise 5. We have the following two results from Chapter 10. Properties of options. (1) American put-call parity. The American put and call options (strike K, maturity T) on non-dividend-paying stock with initial price So satisfy the following double inequality So KC P

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