Multiple Choice
According to the put-call parity theorem, the value of a European put option on a nondividend paying stock is equal to
A) the call value plus the present value of the exercise price plus the stock price.
B) the call value plus the present value of the exercise price minus the stock price.
C) the present value of the stock price minus the exercise price minus the call price.
D) the present value of the stock price plus the exercise price minus the call price.
E) None of the options are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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