10. Put-call parity [LO 25.1] One thing put-call parity tells us is that given any three of...
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10. Put-call parity [LO 25.1] One thing put-call parity tells us is that given any three of a share, a call, a put and a risk-free asset, the fourth can be synthesised or replicated using the other three. For example, how can we replicate a share using a call, a put and a risk-free asset?
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Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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