________ is the relationship between the value of a stock,a bond,and call and put options on the same stock with the same exercise price.
A)Dividend exclusion
B)Limit law
C)Put-call parity
D)Put option equality
E)Option similarity

Question

Quizplus · Accepted Answer

Put-call parity is the concept that relates the value of a stock, a bond, and call and put options on the same stock with the same exercise price. It states that the sum of the price of a call option and the present value of the exercise price is equal to the sum of the price of a put option and the current stock price. This relationship is important in understanding the pricing and valuation of both call and put options.

________ Is the Relationship Between the Value of a Stock,a