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The value Max[0, K(1+r)-T-S0] was shown to be the lowest possible value of a European put. Why is this value irrelevant for an American put?
- The value Max[0, K(1+r)-T-S0] was shown to be the lowest possible value of a European put. Why is this value irrelevant for an American put?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
