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In this week s case, you will evaluate if options prices satisfy put - call parity. In the process, you will learn about the assumptions
In this weeks case, you will evaluate if options prices satisfy putcall parity. In the
process, you will learn about the assumptions underlying the parity relationship.
You will use stock options on Microsoft as an example. The first task is to collect and
tabulate options data from the NASDAQ site for the market activity for stocks MSFT Option Chain
Collect put and call price data from the above website. Collect data that you deem
necessary to assess the putcall parity relationship.
Calculate both sides of the putcall relationship. Tabulate and plot the results.
You can focus on different strike prices and on different expiration dates.
Discuss and interpret any patterns that you observe.
Make clear if you need to make any assumptions in your application of putcall parity or in your interpretation of the results.
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