Given an exercise price,E,time to maturity,t,and European put-call parity,the present value of the strike price plus the value of the call option on the stock is equal to:
A) the price of the stock plus the price of the put option.
B) the present value of the stock minus the put option.
C) the price of the put option minus the market value of the stock.
D) the value of risk-free security,such as a U.S.Treasury bill.
E) the current market value of the stock.
Correct Answer:
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