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Let pK be the current price of a European put expiring at time T with strike price K. Let S_0 be the spot price of
Let pK be the current price of a European put expiring at time T with strike price K. Let S_0 be the spot price of the underlying asset.
Compare the following quantities if possible. If not enough information is available to make a definitive comparison, be sure to indicate that that is the case.
(a) Compare p50, p55, p60. (
b) Compare p50 and 50.
(c) Compare p50 and S0.
(d) Compare 2p54 and p50 + p60.
(e) Compare 2p56 and p50 + p60.
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