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An ATM call on an underlying asset paying dividends continuously at rate q is worth more than an ATM put with the same maturity if
An ATM call on an underlying asset paying dividends continuously at rate q is worth more than an ATM put with the same maturity if and only if q r, where r is the constant risk free rate. a) Prove the result using the Put-Call parity equation b) Prove the result using the Black-Scholes equations
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