The no arbitrage value of an American straddleon a stock when S =

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The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividen

The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividends, zero interest ratesand no transactions costs); {C is Call, P is Put}

Pleases select one answer and explain why

should be less than 2C

should be more than 2C

should be equal to 2P

should be more than 2P

Abhinav 02-Dec-2019

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The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividen

The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividen

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