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Examveda

According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to

A. binomial property

B. constant property

C. constant and variable property

D. stock

Answer: Option D

Solution(By Examveda Team)

According to put call parity relationship, a call option minus put option in addition with present value of exercise is equal to stock. Put-call parity is a principle that defines the relationship between the price of European put options and European call options of the same class, that is, with the same underlying asset, strike price, and expiration date.

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