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Answer the following with True/False: You buy a put and a call option simultaneously in a protective put. For put-call parity to hold, the exercise
Answer the following with True/False:
- You buy a put and a call option simultaneously in a protective put.
- For put-call parity to hold, the exercise price of call and put options must be similar.
- The formula for continuous discounting is FV (e -rt) .
- The minimum value for a put option can sell, can be written as Max (0, P - E).
- The intrinsic value of an in-the-money call option is written as: C=P0 - E.
- d1 and d2 are quantities for standard deviation ().
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