In this paper, we prove, in the context of the Black-Scholes-Merton model, that the price of the American put option in the continuation region is equal to that of a European option with an equivalent payoff. We discuss the extension of the result for other one-dimensional option pricing models....

Is the American put option in the Black-Scholes model simply an incognito European one? In this paper, we develop a numerical procedure, in the context of the Black-Scholes model, to approximate the payoff of a European type option that generates prices that are equal to the prices of the...

Equilibrium real exchange rate provides useful information on the harmonisation of convergence criteria with exchange rate stability criteria; a requirement for accession to the European Monetary Union. This study applies econometric procedures for identifying the equilibrium real exchange rate...