Put-Call Parity Can Be Used to Show

question 65

Multiple Choice

Put-call parity can be used to show

• A)how valuable in-the-money put options can get.
• B)how valuable in-the-money call options can get.
• C)the precise relationship between put and call option 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.

---

Definitions:

Business Activities

The tasks and actions that companies undertake to provide goods or services, generate revenue, and achieve their objectives.

Consumers

Individuals or organizations that use economic services or goods.

Distribution Intensity

indicates the level of market coverage aimed for a product, ranging from intensive, selective, to exclusive distribution strategies.

Exclusive

Items or services that are only available to a specific group, location, or timeframe, often implying high quality or unique status.