Consider a Pair of At-The-Money European Call and a Put

question 7

Multiple Choice

Consider a pair of at-the-money European call and a put options written on the same non-dividend-paying stock with the same maturity. Which of the following statements is most accurate?

• A) The minimum price of the call is at least as much as that of the put.
• B) The minimum price of the call is equal to that of the put.
• C) The minimum price of the call is less than that of the put.
• D) There is not enough information to decide.

---

Definitions:

Gastrosplenic Vein

A blood vessel that drains blood from the stomach and spleen into the portal venous system.

Lumbar Vein

A vein that drains the posterior wall of the abdomen and the spinal cord in the lumbar region.

Ventral Thoracic Vein

A vein located in the ventral (front) part of the thorax, involved in blood circulation.

Subscapular Vein

A vein located beneath the scapula, responsible for draining blood from the shoulder and upper back areas.