Multiple Choice
If the interest rate is positive, then which of the following statements is valid for at-the-money call and put options written on the same underlying stock for the same strike and maturity?
A) The call is worth more than the put.
B) The call price is equal to the put price.
C) The call price is less than the put price.
D) More information is needed to determine the relative values of the call and put.
Correct Answer:
Verified
Correct Answer:
Verified
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