Question

Put-call parity suggests that Select one: a. the sum of the prices of a stock and a call equal zero b. the sum of the prices of a put and a call equal zero c. the sum of the prices of a stock, a call, a put, and a bond equal zero d. sum of the prices of a stock and a put must equal the sum of the prices of a call and a discounted bond with the maturity date as the expiration date of the options

Answer 1

Option D is correct

Sum of the prices of stock and put must equal the same of prices of a call and a discounted bond with maturity date as the expiration date of the option

As per put call parity,

C + X/(1 + r)^t = S +