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Exercise 5.8 Let P be the price of a put option to sell a security, whose present price is S, for the amount K.

Let P be the price of a put option to sell a secur

Exercise 5.8 Let P be the price of a put option to sell a security, whose present price is S, for the amount K. Argue that P Ke-t-S, where t is the exercise time and r is the interest rate.

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