Use the put call parity relationship to demonstrate that an at- the- money call option on a

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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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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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