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According to Put/call Parity

question 1

Multiple Choice

According to put/call parity:

Definitions:

Borrowed

Refers to funds that have been taken from another party under the agreement that they will be repaid at a later date, often with interest.

Semi-Annual Compounding

Interest calculation on a financial instrument twice a year, adding the interest amount to the principal sum each time.

Interest

The charge for borrowing money, typically expressed as an annual percentage of the principal amount.

Quarter

A three-month period on the financial calendar that companies use to report their earnings and performance.