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13.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
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
Answer: D
The put-call parity result is c+Ke-rT=p+S0.
The put-call parity result is c+Ke-rT=p+S0.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015