Examveda
Examveda

Input call parity relationship, present value of exercise price is added to call option which is equal to

A. put option stock

B. call option + stock

C. call option + market price

D. put option + market price

Answer: Option A

Solution(By Examveda Team)

Input call parity relationship, present value of exercise price is added to call option which is equal to put option stock. A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

This Question Belongs to Commerce >> Financial Management

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