According to put-call parity, which of the following would cause the value of a call option to decrease?
A)a decrease in the put price
B)a decrease in the present value of future dividends
C)a decrease in the present value of the exercise price
D)an increase in the share price

Question

Quizplus · Accepted Answer

According to put-call parity, the value of a call option is directly proportional to the put price. Therefore, a decrease in the put price would cause the value of the call option to decrease.

According to Put-Call Parity, Which of the Following Would Cause