Multiple Choice
Given the (1) exercise price E,(2) time to maturity T,and (3) European put-call parity,the present value of E plus the value of the call option is equal to the:
A) current market value of the stock.
B) present value of the stock minus the value of the put.
C) value of the put minus the market value of the stock.
D) value of a risk-free asset.
E) stock value plus the put value.
Correct Answer:
Verified
Correct Answer:
Verified
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