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
Answer: D
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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