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Consider the Following Equation: C = P + S -

Question 27

Multiple Choice

Consider the following equation: C = P + S - PV(K) - PV(Div)
In this equation,what does the term C represent?


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
E) the value of the put option

Correct Answer:

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