Consider a call and a put options with the same strike price and time to expiry. Given that the strike price is exactly equals to the forward price, then:   A. Put and call have same premium   B. The premium of the put is equal to the forward price   C. The premium of the put is equal to the premium of the call plus the present value of the strike   D. The premium of the call is equal to the forward price

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider a call and a put options with the same strike price and time to expiry. Given that the strike price is exactly equals to the forward price, then:

  A.

Put and call have same premium

  B.

The premium of the put is equal to the forward price

  C.

The premium of the put is equal to the premium of the call plus the present value of the strike

  D.

The premium of the call is equal to the forward price

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