Verify that equation (23.14) (for both cases K > H and K < H ) solves the

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Verify that equation (23.14) (for both cases K > H and K < H) solves the boundary conditions for an up-and-in cash put.

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 02:55 AM

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Verify that equation (23.14) (for both cases K > H and K < H ) solves the

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We must show the formula is a solution to e r T t P where P stands for risk neutral probability We b...View the full answer

Derivatives Markets

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