The Following Can Be Incorporated into an Adjusted Put-Call Parity

question 3

Multiple Choice

The following can be incorporated into an adjusted put-call parity (still an equality) for European options:

• A) known dividends
• B) short-selling restrictions
• C) transactions costs (such as brokerage commissions,bid and ask prices,and price impact of trades)
• D) taxes
• E) lack of perfectly divisibility of assets

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Definitions:

Cuban-American

A person of Cuban descent who is a citizen or resident of the United States.

Rite Of Passage

A ceremony or event marking an important stage in someone's life, especially birth, puberty, marriage, and death.

Van Gennep

Arnold van Gennep was a French ethnographer and folklorist best known for his work on rites of passage and the structure of rituals.

Durkheim

Emile Durkheim, a founding figure in sociology, known for his work on social solidarity, the sociology of religion, and the study of suicide.