An Important Assumption of Put-Call Parity Is That

question 18

Multiple Choice

An important assumption of put-call parity is that

• A) both options may have different exercise prices but the same expiration dates
• B) both options have the same exercise prices and the same expiration dates
• C) both options will produce the same payoff on the stock as well as a risky bond
• D) both options will produce the same payoff on the stock as well as another risky asset.

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