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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>^(-rt)-S
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>^(-rt)-S where t is the exercise time and r is the interest rate.
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
