What is the maximum value of the european put, Finance Basics

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What is the maximum value of the european put

Problem

Suppose a European Put has an Exercise Price of $110. The Put expires in 45 days. Suppose the appropriate discount rate on T-Bills maturing in 44 days is 7.715%.

• What is the maximum value of the European Put?
• If the Put where an American Put, what would be its maximum value.

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Finance Basics: What is the maximum value of the european put

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Finance Basics: What is the maximum value of the european put

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