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Only applies to European Options
by stevefan1999 1y ago
Only applies to European Options
- JumpCrisscross 1y ago> Only applies to European Options Absolutely false. Options theory typically starts with European non-dividend paying options for simplicity. PCP applies to American-style options on dividend-paying stocks, you just get a solution with pairs of inequalities defining bounds. That leads to similar arbitrage and conversion mechanics with similar implications for market participants.