Consider a call and a put options with the same strike price and time to expiry. Given that the strike price is exactly equals to the forward price, then: A. Put and call have same premium B. The premium of the put is equal to the forward price C. The premium of the put is equal to the premium of the call plus the present value of the strike D. The premium of the call is equal to the forward price
Consider a call and a put options with the same strike price and time to expiry. Given that the strike price is exactly equals to the forward price, then: A. Put and call have same premium B. The premium of the put is equal to the forward price C. The premium of the put is equal to the premium of the call plus the present value of the strike D. The premium of the call is equal to the forward price
Chapter20: Financing With Derivatives
Section: Chapter Questions
Problem 4QTD
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Question
Consider a call and a put options with the same strike price and time to expiry. Given that the strike price is exactly equals to the forward price, then:
A. |
Put and call have same premium |
|
B. |
The premium of the put is equal to the forward price |
|
C. |
The premium of the put is equal to the premium of the call plus the present value of the strike |
|
D. |
The premium of the call is equal to the forward price |
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