PutCall Parity One thing putcall parity tells us is that given any three of a stock, a

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Put–Call Parity One thing put–call parity tells us is that given any three of a stock, a call, a put, and a T-bill, the fourth can be synthesized or replicated using the other three.

For example, how can we replicate a share of stock using a call, a put, and a T-bill?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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