Question: Hi, someone that can help with these 2 questions? Question 1: Question 2: Assume that we have two put options on the same underlying stock

Hi, someone that can help with these 2 questions?

Question 1:

Hi, someone that can help with these 2 questions? Question 1: Question

Question 2:

2: Assume that we have two put options on the same underlying

Assume that we have two put options on the same underlying stock with maturity T > 0. The underlying stock has the random price Sr at time T. The first put option has a strike price K > 0 and price P. (K) today and the second put option has a strike price 2. K and price P. (2.K) today. There is also a risk-free zero coupon bond with maturity T, face value 1 and current price Bo available on the market. The real-world probability measure is called P. If there is no arbitrage on the market, which of the following statements are correct? (Several answers may be correct.) It is not possible that P. (K) > P. (2.K). If P (St > 2. K) > 0, then necessarily P. (K)

0 and price Co (K) today and a put option with the same strike price K and price P, (K) today. There is also a risk- free zero coupon bond with maturity T, face value 1 and current price Bo with 0

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