alleryStart learning →For a non-dividend stock, put-call parity says C minus P equals what?
AS minus K
BK minus S
CS plus PV of K
DS minus PV of K
Answer & Solution
Correct answer: D. S minus PV of K
Long call plus short put pays S(T) minus K, matching a share bought with borrowing of K, so C minus P is S minus PV of K.
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