Use the put-call parity relationship to demonstrate that an at-the-money call option on a nondividend-paying stock must
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Use the put-call parity relationship to demonstrate that an at-the-money call option on a nondividend-paying stock must cost more than an at-the-money put option. Show that the prices of the put and call will be equal if S0 = (1 + r)T.
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