The implied volatilities of a call and a put with the same terms should be the...

Question

Question

The implied volatilities of a call and a put with the same terms should be the same.

True

False

Answer 1

Answer #1

Please find below the solution.... let me know if you need any clarification..

Statement is FALSE : The implied volatilities of a call and a put with the same terms should be the same.

Implied volatilities of a call and put not necessarily be same with same terms.

Answer 2

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