7) In a Capped call option, the return is capped at a certain specified value A. That is, if the option has strike price K and expiration time r then the payoff is Min(A(S,-K)"). Show that this is equivalent way of defining such an option is to let Max(K, s -A) be the strike price when the call is exercised at time T Argue that an American capped call option (see #7 above) should b only when the price of the security is at least K 8) e exercised early A 7) In a Capped call option, the return is capped at a certain specified value A. That is, if the option has strike price K and expiration time r then the payoff is Min(A(S,-K)"). Show that this is equivalent way of defining such an option is to let Max(K, s -A) be the strike price when the call is exercised at time T Argue that an American capped call option (see #7 above) should b only when the price of the security is at least K 8) e exercised early A