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Using two portfolios derive the put-call parity relationship for European options on stock indices. In doing so, detail the composition of each portfolio and draw

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Using two portfolios derive the put-call parity relationship for European options on stock indices. In doing so, detail the composition of each portfolio and draw a table illustrating the initial and terminal values of the portfolios. (5 marks) Using two portfolios derive the put-call parity relationship for European options on stock indices. In doing so, detail the composition of each portfolio and draw a table illustrating the initial and terminal values of the portfolios

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