Vidyalelo
Management · Q635

Financial Management

Graduate and Post Graduate · Management · question 635

Q635

Input call parity relationship, put option minus call option in addition with stock is equal to

A.
exercise price present value
Answer
B.
exercise price future value
C.
time line value
D.
time value of bond

Answer: Option A

Solution

Answer: Option A
Solution:
Input call parity relationship, put option minus call option in addition with stock is equal to exercise price present value. The exercise price is the price at which an underlying security can be purchased or sold when trading a call or put option, respectively.