Referring to put-call parity, which one of the following alternatives would allow you to create (own) a synthetic European call option? Sell the stock, buy a European put option on the same stock with the same exercise price and the same maturity, invest an amount equal to the present value of the exercise price in a pure-discount riskless bond Buy the stock, sell a European put option on the same stock with the same exercise price and the same matunty: short an amount equal to the present value of the exercise price worth of a pure-discount riskless bond Buy the stock, buy a European put option on the same stock with the same exercise price and the same maturity; short an amount equal to the present value of the exercise price worth of a pure-discount riskless bond
Referring to put-call parity, which one of the following alternatives would allow you to create (own) a synthetic
European call option?
Sell the stock, buy a European put option on the same stock with the same exercise price and the same maturity, invest an amount equal to the
present value of the exercise price in a pure-discount riskless bond
Buy the stock, sell a European put option on the same stock with the same exercise price and the same matunty: short an amount equal to the present
value of the exercise price worth of a pure-discount riskless bond
Buy the stock, buy a European put option on the same stock with the same exercise price and the same maturity; short an amount equal to the present
value of the exercise price worth of a pure-discount riskless bond
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