When Can Put-Call Parity Be Applied

question 11

Multiple Choice

When can put-call parity be applied?
I.Call and put have the same strike price
II.Call and put have the same time to expiration and are held until expiration
III.Call and put are created using the same underlying asset
IV.Call and put have the same premium

• A)Only I is required
• B)Only I and II are required
• C)Only I, II, and III are required
• D)I, II, III, and IV are required

---

Definitions:

Neural Tube

The embryonic precursor to the central nervous system, which later develops into the brain and spinal cord.

Mesonephros

The mesonephros is the middle of the three pairs of embryonic kidneys that develop in vertebrates, functioning transiently and later contributing to the genital system in males.

Secondary Palate

The part of the palate that separates the nasal cavities from the oral cavity in mammals, contributing to the ability to eat and breathe simultaneously.

Mandibular Processes

Refers to the extensions or projections of the mandible bone, which contribute to jaw formation and are critical in chewing and speech.