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Basic Question 4 of 9
A description least likely to explain put-call parity is ______.
B. a put is equivalent to a long call, a long position in the underlying asset, and a long position in the risk-free asset
C. a call is equivalent to a long put, a long position in the underlying asset, and a short position in the risk-free asset
A. a fiduciary call option strategy and a protective put option strategy for an underlying asset are equal in value
B. a put is equivalent to a long call, a long position in the underlying asset, and a long position in the risk-free asset
C. a call is equivalent to a long put, a long position in the underlying asset, and a short position in the risk-free asset
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | + = Long - = Short |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain put-call parity for European options
CFA® 2024 Level I Curriculum, Volume 5, Module 9.