Consider the Following Equation: C = P + S -

question 8

Multiple Choice

Consider the following equation: C = P + S - PV(K) - PV(Div)
In this equation, what does the term K represent?

• A) the value of the call option
• B) the strike price of the option
• C) the price of a zero-coupon bond
• D) the stock's current price

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