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Suppose c and p are the current prices of a European call and a put while cA and pA are those corresponding to American

Posted: Thu May 19, 2022 6:41 am
by answerhappygod
Suppose c and p are the
current prices of a European call and a put
while cA and pA are
those corresponding to American options. If today’s price of the
stock underlying the options is S, a zero-coupon bond
that matures on the common expiration date for the options
is B, and the common strike price is K,
then the following statement is INCORRECT:
Please provide explanation.