Question: Put Call Parity is a powerful equation linking bond and equity with options. Do you think you can use this parity to express points scored
Put Call Parity is a powerful equation linking bond and equity with options. Do you think you can use this parity to express points scored in a basket ball game? If yes, suggest an expression and then explain.
A.) Pe(S0,T, X) + S0 = Ce(S0,T,X) + X(1 + r)-T
B.) S0 = Ce(S0,T,X) Pe(S0,T,X) + X(1 + r)-T
C.) Ce(S0,T,X) = Pe(S0,T,X) X(1 + r)-T
D.) none of the above
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