Employ an arbitrage argument to explain why an american


Employ an arbitrage argument to explain why an American option is always worth at least as much as: (a) a European option on the same asset with the same strike price and exercise date, and (b) its intrinsic value. For both parts (a) and (b) clearly state what strategy is employed to make a profit if the condition is not met.

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Financial Management: Employ an arbitrage argument to explain why an american
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