Home / Questions / The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividen
The no arbitrage value of an American straddleon a stock when S = PV(K) (assume no dividends, zero interest ratesand no transactions costs); {C is Call, P is Put}
Pleases select one answer and explain why
A. should be less than 2C |
|
B. should be more than 2C |
|
C. should be equal to 2P |
|
D. should be more than 2P |
Dec 02 2019 Read more Less More
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