Use the put-call parity for European options on a non dividend paying stock ct - pt= St

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Use the put-call parity for European options on a non dividend paying stock ct - pt= St - Ke^-r(T-t) to prove that: for at-the money options, the call premium is greater than the put premium.

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Market Practice In Financial Modelling

ISBN: 9789814366540

1st Edition

Authors: Tan Chia Chiang

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Posted Date: Mar 24, 2024 05:28 PM

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Use the put-call parity for European options on a non dividend paying stock ct - pt= St

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To prove that for atthemoney options the call premium is greater than the put premium using the putc... View the full answer

Market Practice In Financial Modelling

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