Question: Let p( S, T, X ) denote the value of a European put on a stock selling at S dollars, with time to maturity T,

Let p( S, T, X ) denote the value of a European put on a stock selling at S dollars, with time to T, and with exercise price X, and let P( S, T, X ) be the value of an American put.
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?

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