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What is put-put call parity? What is the use of this parity? Consider the following: Stock price: $50 Call price (1-expiration, X = $50): $10
- What is put-put call parity? What is the use of this parity? Consider the following:
Stock price: $50
Call price (1-expiration, X = $50): $10
Put price (1-expiration, X = $50): $4
Risk-free interest rate: 5% per year.
Find out whether investors can take advantage here and how?
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
