Put-call parity can be used to assess:
A) any arbitrage opportunity between call and put.
B) how far in-the-money call options can get.
C) the precise relationship between put and call prices given unequal exercise prices and unequal expiration dates.
D) all of the above.

Question

Quizplus · Accepted Answer

Put-call parity is a financial principle that defines a specific relationship between the price of European call and put options with the same strike price and expiration date, allowing for the identification of arbitrage opportunities if this relationship is violated.

Put-Call Parity Can Be Used to Assess