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Consider the Following Equation: C = P + S -

Question 6

Multiple Choice

Consider the following equation: C = P + S - PV(K) - PV(Div)
In this equation the term C refers to:


A) the value of the call option.
B) the stock's current price.
C) the payoff of a zero-coupon bond.
D) the strike price of the option.

Correct Answer:

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