Question: We discussed Put-Call Parity in class. We also used this idea to price put options, with the underlying assumption that no arbitrage exists when the
We discussed Put-Call Parity in class. We also used this idea to price put options, with the underlying assumption that no arbitrage exists when the parity equation holds. Find the current S&P 500 index value and pick an S&P 500 option thats at-the-money or near ATM. See if the parity equation holds. Why or why not?
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