Question
Prove that for a European put option it applies that m a x ( 0 , d ( t , T ) K S (
Prove that for a European put option it applies that
max(0,d(t,T)KS(t))P(t;T,K)d(t,T)K
where S (t) is the price of the underlying asset at time t, K is the exercise price, T is
the expiration date and d (t, T) is the discount factor.
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
