Multiple Choice
Given an exercise price,time to maturity,and European put-call parity,the present value of the strike price plus the price of the call option is equal to the:
A) current market value of the stock.
B) present value of the stock minus the price of a put option.
C) price of a put option minus the market value of one share of stock.
D) value of a risk-free U.S.Treasury bill.
E) price of the stock plus the price of the put option.
Correct Answer:
Verified
Correct Answer:
Verified
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