Put-Call Parity Can Be Used to Show

question 65

Multiple Choice

Put-call parity can be used to show

• A)how valuable in-the-money put options can get.
• B)how valuable in-the-money call options can get.
• C)the precise relationship between put and call option prices, given equal exercise prices and equal expiration dates.
• D)that the value of a call option is always twice that of a put, given equal exercise prices and equal expiration dates.

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