Question: Why when the stock pays dividends. Give a numerical example (choosing x, k, r, Tt,) in which it is obvious (without any formulas) that American
Why when the stock pays dividends. Give a numerical example (choosing x, k, r, Tt,) in which it is obvious (without any formulas) that American put price on
a nondividend paying stock is larger then the corresponding European put price.
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