Formulate and prove an analogous result for upper bounds

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Assume the interest rate is zero. Let S, be the price of a non-dividend paying stock, A derivative, D, pays f(S_T) at time T. Show that the optimal modelfree lower bound for D is always less than or equal to f (S_o). Formulate and prove an analogous result for upper bounds.

Reference no: EM131187659

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