The elasticity of the put price Po = P(T, s, K, 0,r) with respect to the stock price s is defined as Ep Po as = which is the percent decrease in Po due to a 1% increase in s. Show that Ep = s(-d) Ke-rt0(-d2) s(-d) and that = S (a) lim, s+too Ep = = too. (b) lim,70+ Ep = 0. Interpret financially and compare with Exercise 13. The elasticity of the put price Po = P(T, s, K, 0,r) with respect to the stock price s is defined as Ep Po as = which is the percent decrease in Po due to a 1% increase in s. Show that Ep = s(-d) Ke-rt0(-d2) s(-d) and that = S (a) lim, s+too Ep = = too. (b) lim,70+ Ep = 0. Interpret financially and compare with Exercise 13