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Assume that a company pays no dividends over the life of European call and put options. Both call and put options mature in 1 year
Assume that a company pays no dividends over the life of European call and put options. Both call and put options mature in 1 year (i.e., they have the same expiry date), and both are currently at- the-money. In a no-arbitrage condition, should the call option be priced higher than/lower than/equal to the put option? Clearly prove your
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