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financial mathematics problem Problem 4. Define by Pr the price of the European put option in the GBM model as the function of x=the value

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financial mathematics problem

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Problem 4. Define by Pr the price of the European put option in the GBM model as the function of x=the value of the underlying stock. In other words, Pa = ENI- In(x/ K) + (r+ 02/2)T In(x/ K) + (r - 02/2)T OVT - Ke TN- - x + Ke-T. OVT Show that Pr is a decreasing function in r

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