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Problem 1. (10 points) Assume that you hold one European put on a non-dividend stock with strike of X and stock. A friend of yours

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Problem 1. (10 points) Assume that you hold one European put on a non-dividend stock with strike of X and stock. A friend of yours lends at risk-free rate, where t is time to expiration of your option and X is the exercise price Show that you will have as much as your friend or more than him at the time of expiration of your option. What is the lower bound of European Put on a non-dividend stock

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