alleryStart learning →A stock is Rs 100, the call is Rs 12 and the present value of the strike is Rs 95. By put-call parity, what is the put price?
ARs 17
BRs 7
CRs 5
DRs 12
Answer & Solution
Correct answer: B. Rs 7
Parity gives P = C + PV(K) minus S = 12 + 95 minus 100 = Rs 7.
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