Question: bounds for put option 1. (5 marks) (Bounds for put/call options) a. (2.5 marks) Let Po be the time-0 price of a K-strike and T-expiry

bounds for put option bounds for put option 1. (5 marks) (Bounds for put/call options) a.

1. (5 marks) (Bounds for put/call options) a. (2.5 marks) Let Po be the time-0 price of a K-strike and T-expiry European put option on a non-dividend-paying stock S. Also, let Zo be the time-0 value of a zero-coupon bond maturing at time T. Prove that b. (2.5 marks) Let 0

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