The basic put-call parity can be rearranged as:
A)P - S = C + PV(X)
B)C + P = S - PV(X)
C)C = P +S -PV(X)
D)P = C + S + PV(X)

Question

Quizplus · Accepted Answer

Put-call parity is a fundamental principle in options pricing that shows the relationship between the price of European put and call options with the same strike price and expiration date. The correct rearrangement of the put-call parity formula is C = P + S - PV(X), where C is the price of the call option, P is the price of the put option, S is the current stock price, and PV(X) is the present value of the strike price X.

The Basic Put-Call Parity Can Be Rearranged As