Let p( S, T, X ) denote the value of a European put on a stock selling
Question:
a. Evaluate p (0, T, X).
b. Evaluate P (0, T, X).
c. Evaluate p (S, T, 0).
d. Evaluate P (S, T, 0).
e. What does your answer to (b) tell you about the possibility that American puts may be exercised early?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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