For a European Option, Value of Put = (Value of Call)−

question 11

True/False

For a European option, Value of put = (value of call)− share price + PV (exercise price).

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Definitions:

Test Statistic

A figure determined from data samples, which is used during a hypothesis test to evaluate whether to refuse the null hypothesis.

Type I Error

An erroneous denial of a valid null hypothesis, commonly called a "false positive."

Null Hypothesis

A hypothesis used in statistics that suggests there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Alternative Hypothesis

The hypothesis that proposes a difference or relationship exists between two variables, contrasting the null hypothesis.