Suppose the strike price is growing at the riskless interest rate, show that the price of an
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Suppose the strike price is growing at the riskless interest rate, show that the price of an American put option is the same as that of the corresponding European counterpart.
Show that the early exercise privilege of the American put is rendered useless.
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Answer The price of an American put option and the corresponding European put option are the same regardless of the strike price growth rate This is b...View the full answer
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