Deduce from the put-call parity relation that the price of a European put on a nondividend paying
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Deduce from the put-call parity relation that the price of a European put on a nondividend paying asset is bounded above by
Then deduce that the value of a perpetual European put option is zero. When does equality hold in the above inequality?
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The putcall parity relationship for European options on nondividendpay...View the full answer
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