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letter is between A and M) A stock does not pay dividend. European call/put option premium (i.e. price) written on this stock is denoted by
letter is between A and M) A stock does not pay dividend. European call/put option premium (i.e. price) written on this stock is denoted by c(t, T, K) and p(t, T, K), respectively, where K is the strike price. Show that (hint : use the put-call parity for non-dividend-paying stocks) : c(t, T, 3) - 3c(t, T, 7) + 2c(t, 7, 9) = p(t, T, 3) 3p(t, T, 7) +2p(t, T, 9) - =
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