Show that the approximate value of the American commodity put option based on the quadratic approximation method
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Show that the approximate value of the American commodity put option based on the quadratic approximation method is given by
S*.">
Explain why the formula holds for all values of b.
Show that
Transcribed Image Text:
P(S, T) = P(S, T) – S* 91 91 [1-eh-N(-d₁(S*))](/)". S> S*.
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