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A. B. C. Which of the following is correct concerning put-call parity? a. Call price must be less than put price b. Call price must

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C. Which of the following is correct concerning put-call parity?

a. Call price must be less than put price

b. Call price must be greater than put price

c. C + P = S0 + Xe-rT d. C - S0 = P - Xe-rT

Which put option is written on the stock with the lower price? Stock Standard Deviation 30% 40% Exercise Price $40 $40 Time to Expiration 3 months 3 months Put Option Price S8 $6 a. b. c. d. Stock X and Stock Y have approximately the same price Stock X Stock Y Not enough information to determine which stock has the lower price

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