Question
Use the put-call parity for European options on a non dividend paying stock ct - pt= St - Ke^-r(T-t) to prove that: for at-the money
Use the put-call parity for European options on a non dividend paying stock ct - pt= St - Ke^-r(T-t) to prove that: for at-the money options, the call premium is greater than the put premium.
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Step: 1
To prove that for atthemoney options the call premium is greater than the put premium using the putc...
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Market Practice In Financial Modelling
Authors: Tan Chia Chiang
1st Edition
9814366544, 978-9814366540
