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Exercise 5.15 Consider two put options on the same security, both of which have expiration t. Suppose the exercise prices of the two puts are

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Exercise 5.15 Consider two put options on the same security, both of which have expiration t. Suppose the exercise prices of the two puts are Ki and K2, where Ki > K2. Argue that where P. is the price of the put with strike Ki, i = 1,2

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