In most markets, you are not permitted to short sell if the stock price has fallen. That

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In most markets, you are not permitted to short sell if the stock price has fallen. That is, you can only short sell on an “uptick.” Using put-call parity, show that you can replicate the cash flows of a short sale.

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Question Posted: Feb 25, 2015 09:41 AM

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In most markets, you are not permitted to short sell if the stock price has fallen. That

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Introduction To Corporate Finance

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