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put call parity 0)) Let S be a stock with share price 5, at times 0 S r S T. Assume that a safe asset

put call parity

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0)) Let S be a stock with share price 5, at times 0 S r S T. Assume that a safe asset is available with continuously compounded interest rate r. Consider a European Call and Pat with prices C and P, each maturing at T and having equal strike K. Derive the put-call parity. 6 P=soKe-'T where r is the riskless rate

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