In light of this discussion, explain why the put-call parity relationship is valid only for European options

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In light of this discussion, explain why the put-call parity relationship is valid only for European options on non-dividend-paying stocks. If the stock pays no dividends, what inequality for American options would correspond to the parity relation?

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Mar 13, 2024 05:01 AM

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In light of this discussion, explain why the put-call parity relationship is valid only for European options

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The parity relationship assumes that all options a...View the full answer

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