Order the answer to: What is the impact (if…
|Question||What is the impact (if any) of negative interest rates on:
a) The put-call parity result for European options
b) The result that American call options on non-dividend-paying should never be exercised early.
c) The result that American put options on non-dividend paying should sometimes be exercised early.
Assume that holding cash earning zero interest is not possible.
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