Put-call parity is valid for
A)Stock returns that are normally distributed,that is,stock movements are symmetric,but not otherwise.
B)American calls and puts when the stock pays no dividends.
C)European calls and puts when the stock pays dividends.
D)Stocks but not for currencies.

Question

Quizplus · Accepted Answer

Put-call parity is valid for any stock return distribution,not just normal.It does not hold with equality for American options.It holds for any asset,not just stocks.

Put-Call Parity Is Valid for