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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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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
