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FinanceQ&A Library2c) Give an example to show that the American put can be worth more than the European put, that is, where immediate exercise of the American gives payout at times T strictly greater than the payout of the European. Hint: Exercising early means the strike price K will be received early.Start your trial now! First week only $4.99!*arrow_forward*

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2c) Give an example to show that the American put can be worth more than the European put, that is, where immediate exercise of the American gives payout at times T strictly greater than the payout of the European. Hint: Exercising early means the strike price K will be received early.

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