14. Put-call parity (S21-2) A European call and put option have the same maturity. Both are at-the-money,

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14. Put-call parity (S21-2) A European call and put option have the same maturity. Both are at-the-money, so the share price equals the exercise price. The share does not pay a dividend.

Which option should sell for the higher price? Explain.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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