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1. Prove the put-call parity: Ct(T,K)Pt(T,K)=StBt(T)K, where St is the price of a stock at time t,Ct(T,K) and Pt(T,K) are the prices of European call

image text in transcribed 1. Prove the put-call parity: Ct(T,K)Pt(T,K)=StBt(T)K, where St is the price of a stock at time t,Ct(T,K) and Pt(T,K) are the prices of European call and put options on the stock at time t with strike K and maturity T, and Bt(T)=er(Tt) is the price of a zero-coupon bond at time t with face value $1 and maturity T. The annual interest rate r is constant

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