Demonstrate that an at-the-money call option on a given stock must cost more than an at-themoney put

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Demonstrate that an at-the-money call option on a given stock must cost more than an at-themoney put option on that stock with the same expiration. The stock will pay no dividends until after the expiration date. (Hint: Use put-call parity.)

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Investments

ISBN: 9781259277177

11th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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