Q628
Input call parity relationship, present value of exercise price is added to call option which is equal to
A.
put option stock
AnswerB.
call option + stock
C.
call option + market price
D.
put option + market price
Answer: Option A
Solution
Answer: Option A
Solution:
Input call parity relationship, present value of exercise price is added to call option which is equal to put option stock. A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).