Put-Call Parity Can Be Used to Show

question 22

Multiple Choice

Put-call parity can be used to show:

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

---

Definitions:

Gastrointestinal Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, including organs like the stomach and intestines, involved in digesting food and absorbing nutrients.

Dipeptide

A molecule consisting of two amino acids joined by a single peptide bond.

Fatty Chyme

A semi-fluid mass of partly digested food enriched with fats, that moves from the stomach to the small intestine.

Cholecystokinin

A hormone that stimulates the digestion of fat and protein by triggering the gallbladder to contract and release bile.