A European put option and European call option on the same underlying stock have the same...

   

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A European put option and European call option on the same underlying stock have the same strike price (K) and expiration time (7). Suppose the risk-free rate is r>0. Under what condition(s) would the put option and call option to trade at the same price? A European put option and European call option on the same underlying stock have the same strike price (K) and expiration time (7). Suppose the risk-free rate is r>0. Under what condition(s) would the put option and call option to trade at the same price?

Answer rating: 100% (QA)

The putcall parity theorem provides a relationship between the prices of European put and call optio... View the full answer