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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Definitions:

Female Fetuses

Refers to unborn female offspring during their development in the uterus.

External Stimuli

Any objects or events in the environment that can elicit a response from our sensory systems.

Fetal Period

The stage of prenatal development that occurs from the end of the embryonic period to birth, characterized by rapid growth and maturation of bodily structures.

Major Organs

Essential organs in the body that perform vital functions necessary for survival, such as the heart, brain, liver, and kidneys.