Which of the following is the put-call parity result for a non-dividend-paying stock?
A. The European put price plus the European call price must equal the stock price plus the present value of the strike price
B. The European put price plus the present value of the strike price must equal the European call price plus the stock price
C. The European put price plus the stock price must equal the European call price plus the strike price
D. The European put price plus the stock price must equal the European call price plus the present value of the strike price
D
The put-call parity result is c+Ke-rT=p+S0.
You might also like to view...
Classical conditioning and operant conditioning are both examples of ________
A) cognitive dissonance theories B) heuristics C) psychographics D) behavioral learning E) observational learning
The advantage to host countries of international management contracts is that they ________
A) receive state-of-the-art facilities B) get assistance without foreign control C) can pay in local currency D) save on making capital investments