1. put option stock
  2. call option + stock
  3. call option + market price
  4. put option + market price
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1 Answers

Answer: Option 1

Input call parity relationship, present value of exercise price is added to call option which is equal to put option stock. A put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

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