A Put and a Call Both Have the Same Maturity

question 43

Multiple Choice

A put and a call both have the same maturity and both have an exercise price which is equal to the current stock price.The interest rate is 5%.Which option should sell for a higher price?

• A) the put.
• B) both should sell for the same price.
• C) the call.
• D) can't say without knowing the variability of the stock.

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Total Tax Liability

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