What is the impact (if any) of negative interest rates on: a) The put-call parity result for
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a) The put-call parity result for European options
b) The result that American call options on non-dividend-paying stocks should never be exercised early.
c) The result that American put options on non-dividend paying stocks should sometimes be exercised early.
Assume that holding cash earning zero interest is not possible.
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Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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