Put-call parity states that for European call (C) and put (P) options on the same Stock Index

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Put-call parity states that for European call (C) and put (P) options on the same Stock Index (S), with the same exercise price (K), and time to maturity, T years then if there is a continuous dividend yield, d, then:

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Posted Date: Jan 02, 2021 09:23 PM

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Put-call parity states that for European call (C) and put (P) options on the same Stock Index

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V c Expe rt S 0 V p Where V c Value of call Expe rt Present Value of Exercise Price S ... View the full answer

Economics of Money, Banking and Financial Markets

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