 Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2020/ii/paper-4/29k/iii/solution

Codex  0 Created 2026-09-24 Updated 2026-09-29

(S_{T} - K)^{+} \geq S_{T} - K

V_{0} \geq e^{- r T} (E_{Q} S_{T} - K) = e^{- r T} (S_{0} e^{r T} - K) = S_{0} - e^{- r T} K .

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