According to the Put-Call Parity Theorem, the Value of a European

question 52

Multiple Choice

According to the put-call parity theorem, the value of a European put option on a nondividend paying stock is equal to

• A) the call value plus the present value of the exercise price plus the stock price.
• B) the call value plus the present value of the exercise price minus the stock price.
• C) the present value of the stock price minus the exercise price minus the call price.
• D) the present value of the stock price plus the exercise price minus the call price.
• E) None of the options are correct.

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