Which of the Following Is the Put-Call Parity Result for a Non-Dividend-Paying

question 19

Multiple Choice

Which of the following is the put-call parity result for a non-dividend-paying stock?

• A) The European put price plus the European call price must equal the stock price plus the present value of the strike price
• B) The European put price plus the present value of the strike price must equal the European call price plus the stock price
• C) The European put price plus the stock price must equal the European call price plus the strike price
• D) The European put price plus the stock price must equal the European call price plus the present value of the strike price

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Definitions:

Chart of Accounts

A systematic listing of all accounts used in the accounting system of a company, categorizing all financial transactions.

Net Income

Represents the total earnings of a company after all expenses and taxes have been deducted from revenue.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Credit Column

In accounting, the column in ledgers or financial statements where credits are recorded, typically indicating a decrease in assets or an increase in liabilities.