What Is the Lowest Possible Value of a European Put

question 14

Multiple Choice

What is the lowest possible value of a European put?

• A)Max(0,X - S₀)
• B)X(1 + r)^-T
• C)Max[0,S₀ - X(1 + r)^-T]
• D)Max[0,X(1 + r)^-T - S₀)]
• E)none of the above

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The act of placing the letters of a word in the appropriate order as part of writing.