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Using arbitrage arguments , and in the notation of the notes, show that e^(-rT) X -S is equal or smaller than p, for a European
Using arbitrage arguments , and in the notation of the notes, show that e^(-rT) X -S is equal or smaller than p, for a European put.
Does this imply that X -S is equal or smaller than p? ( assume the underlying does not pay dividends)
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