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Problem 7. (10 Points) Denote by PA(X,T) the fair prices (at time t = 0) of the American put option with strike price X

Problem 7. (10 Points) Denote by PA(X,T) the fair prices (at time t = 0) of the American put option with strike price X and expiry date T, written on some stock S. Show that if 0 < X1 < X2, then 0 PA(X2, T) PA(X1, T) X2 - X.

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