Derivatives Q115

115According to put-call parity, which of the following relationships hold?

A
The put price is always equal to the call price.
B
The put price minus the underlying price equals the call price minus the present value of the exercise price.
C
The put price plus the underlying price equals the call price plus the present value of the exercise price.

Option : C
Explanation : The put and underlying make up a protective put, while the call and present value of the exercise price make up a fiduciary call.

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