Upper and Lower Bounds for the Price of an American Put Price
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Using DerviaGem:
The price of an American call on a non-dividend-paying stock is $4. The stock price is $31, the strike price is $30, and the expiration date is in three months. The risk-free interest rate is 8%. Derive upper and lower bounds for the price of an American put on the same stock with the same strike price and expiration date.
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Solution Summary
The solution derives upper and lower bounds for the price of an American put price.
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