Question
29. For a European put option, what is the maximum put value that does not result in an arbitrage? A. The present value of the
29. For a European put option, what is the maximum put value that does not result in an arbitrage?
| A. | The present value of the stock price computed at the risk-free rate. | |
| B. | The present value of the strike price computed at the risk-free rate. | |
| C. | The present value of the similar call option computed at the risk-free rate. | |
| D. | The price of the stock |
30. Which of the following statements is true about put-call parity?
| A. | The call option premium must equal the put option premium for any given strike price. | |
| B. | The difference between the call price and the stock price equals the difference between the stock price and the discounted strike price. | |
| C. | The difference between the call price and the put price equals the difference between the stock price and the discounted strike price. | |
| D. | The difference between the call price and the put price equals the difference between the option premium and the discounted strike price. |
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