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Use Derivagem and your own hypothetical figures to do the following: a ) Confirm that the put - call parity holds for European calls and
Use Derivagem and your own hypothetical figures to do the following: a Confirm that the putcall parity holds for European calls and puts on a stock that pays no dividends. b Graph the call and put option values as functions of the stock price, and as functions of the stock volatility. Give an intuitive explanation of your graphs.
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