Consider a Call and a Put Written on a Stock

question 8

Multiple Choice

Consider a call and a put written on a stock that pays no dividends.If the interest rate is positive and the options have the same price and identical contract terms,then which of the following is true?

• A) stock price = strike price
• B) stock price is greater than the strike price
• C) stock price is greater than or equal to the strike price
• D) stock price is less than the strike price
• E) need more information

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