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( Ch 1 3 ) ( 1 5 points ) Show that the Black Scholes Merton formulas for European call and put options satisfy put
Ch points Show that the BlackScholesMerton formulas for European call and put options satisfy putcall parity. Hint: Use BlackScholesMerton formula for European call to derive what equals c KerT Then use the BlackScholesMerton formula for European put to check what equals to the thing you previously derived for c KerT and compare it with the equation of putcall parity.
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