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QUESTION 7 Assume zero rates and no dividends, the forward price is $ 1 0 0 . If an European put at K = 1

QUESTION

7

"Assume zero rates and no dividends, the forward price is $

100 .

If an European put at

K = 110

is quoted at $

111,

what is the minimum amount vou can make at exnin by selling the put at the quoted price?

"

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