In light of this discussion, explain why the put-call parity relationship is valid only for European options
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In light of this discussion, explain why the put-call parity relationship is valid only for European options on non-dividend-paying stocks. If the stock pays no dividends, what inequality for American options would correspond to the parity relation?
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Related Book For
ISE Investments
ISBN: 9781260571158
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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