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Consider the following two portfolios: Portfolio A: one European call option plus a zero-coupon bond that provides a payoff of K at time T; Portfolio

Consider the following two portfolios: Portfolio A: one European call option plus a zero-coupon bond that provides a payoff of K at time T; Portfolio B: one European put option plus one share of non-dividend-paying stock.

Assuming that the call and put options have the same strike price K and the same time to maturity T, analyse the relationship between the values of underlying stock price at time T and the values of portfolio A and portfolio B.

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