Question: Answer QUESTION 6 SHOW FULL WORK AND EXPLANATION!! 6. Prove the following inequality for the American options in using the payoffs table: S_o-K C-P S_o-Ke^(-rT)

Answer QUESTION "6" SHOWFULL WORKAND EXPLANATION!!

6. Prove the following inequality for the American options in using the payoffs table:

S_o-K C-P S_o-Ke^(-rT)

where"S_0"is the current stock price,"K" is the strike price for both American call and put options,"r" is the risk-free rate, and "T" is the time to maturity.

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