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

Question

Quizplus · Accepted Answer

Put-call parity is the relationship between the value of a stock, bond and call and put options on the same stock and the same exercise price. It states that the price of a call option plus the present value of the exercise price equals the price of a put option plus the current stock price. This relationship is important in options trading and pricing strategies.

________ Is the Relationship Between the Value of a Stock