Which of the Following Is Consistent with Put-Call-Spot Parity

question 28

Multiple Choice

Which of the following is consistent with put-call-spot parity?

• A) S + C = P + X/(1 + RFR)
• B) S + P = C + X/(1 + RFR)
• C) S - C = P + X/(1 + RFR)
• D) S - P = C + X/(1 + RFR)
• E) S = P - C + X/(1 + RFR)

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Definitions:

Compromise Tariff

refers to the Tariff of 1833, which was enacted to resolve the Nullification Crisis between the federal government and South Carolina by gradually reducing import duties.

Dorr War

A short-lived armed insurrection in the U.S. during the early 1840s, led by Thomas Wilson Dorr, advocating for broader voting rights in Rhode Island.

John Tyler

The tenth President of the United States, who served from 1841 to 1845, known for his annexation of Texas.

Whig Economic Program

Economic policies advocated by the American Whig Party in the mid-19th century, emphasizing support for industry, banking, and internal improvements like roads and canals.