Check the following combinations of puts and calls and determine whether they conform to the put-call parity

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Check the following combinations of puts and calls and determine whether they conform to the put-call parity rule for European options. If you see any violations, suggest a strategy?
a. July 155
b. August 160
c. October 170

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Introduction To Derivatives And Risk Management

ISBN: 9781305104969

10th Edition

Authors: Don M. Chance, Robert Brooks

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Question Posted: Apr 07, 2016 08:31 AM

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Check the following combinations of puts and calls and determine whether they conform to the put-call parity

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In each case we compute the value of P S 0 and compare it to the value C X1 ...View the full answer

Introduction To Derivatives And Risk Management

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