Question: Use the put call parity relationship to demonstrate that an at- the- money call option on a non-dividend- paying stock must cost more than an

Use the put– call parity relationship to demonstrate that an at- the- money call option on a non-dividend- paying stock must cost more than an at- the- money put option. Show that the prices of the put and call will be equal if S = X/( 1 + r) T.

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