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​A Put Option Premium Has a Lower Bound That Is

question 122

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​A put option premium has a lower bound that is equal to the greater of zero and the difference between the underlying ____ prices. The upper bound of a put option premium is the ____ price.


Definitions:

Expected Value

The long-run average value of repetitions of an experiment it represents.

Metric System

A decimal system of weights and measures based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.

Centimeter

A unit of length in the metric system, equal to one hundredth of a meter, commonly used for measuring small distances.

Millimeter

A metric unit of length equal to one thousandth of a meter.

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