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Let C a and P a be the costs of American call and put options (respectively) on the same security, both having the same strike
Let Ca and Pa be the costs of American call and put options (respectively) on the same security, both having the same strike price K and exercise time t. If S is the present price of the security, give either an identity or an inequality that relates the quantities Ca, Pa, K, and e-rt . Briefly explain.
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