Put-Call Parity Can Be Used to Show

question 22

Multiple Choice

Put-call parity can be used to show:

• A) how far in-the-money put options can get.
• B) how far in-the-money call options can get.
• C) the precise relationship between put and call prices given equal exercise prices and equal expiration dates.
• D) that the value of a call option is always twice that of a put given equal exercise prices and equal expiration dates.
• E) that the value of a call option is always half that of a put given equal exercise prices and equal expiration dates.

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