Question
Consider a stock that pays no dividends whose value equals the strike price of a call and put with identical contract terms on the stock.
Consider a stock that pays no dividends whose value equals the strike price of a call and put with identical contract terms on the stock. Interest rates are positive. Then, which of the following is true?
| a.the call price will be greater than the put price | |||
| b.None of these answers are correct. | |||
| c.the call price will be less than the put price | |||
| d.the call price will be less than or equal to the put price | |||
| e.the call price must equal the put price
|
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
