To Compute the Value of a Put Using the Black-Scholes

question 40

Multiple Choice

To compute the value of a put using the Black-Scholes option pricing model,you:

• A)first have to compute the value of the put as if it is a call.
• B)first have to apply the put-call parity relationship.
• C)compute the value of an equivalent call and then subtract that value from one.
• D)compute the value of an equivalent call and then subtract that value from the market price of the stock.
• E)compute the value of an equivalent call and then multiply that value by e^-RT.

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