Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a put and a call option have the same maturity and

A put and a call option have the same maturity and strike price. If they also...

50.1K

Verified Solution

Question

Finance

A put and a call option have the same maturity and strike price.If they also have the same price, which one is in the money?Mathematically show how you reached your conclusion.

Answer & Explanation Solved by verified expert
4.1 Ratings (823 Votes)
Let p Price of put option premium of put option c Price of call option Premium of call option T time to maturity r risk free rate X Exercise price Strike    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A put and a call option have the same maturity and strike price.If they also have the same price, which one is in the money?Mathematically show how you reached your conclusion.

Other questions asked by students

Algebra
1.2K views

12 x y 1 s

Calculus
1.2K views

The line with vector equation 1 = (2,0, 1) + s(-4,5,5), S?R, lies on the...

Statistics
1.2K views

Identify the correct statements. Fix the incorrect ones. A sampling distribution describes the distribution of data values. A...

Chemistry
1.2K views

A.) In yeast, ethanol is produced from glucose under anaerobic conditions. What is the maximum amount...

Physics
1.2K views

Two masses m 5 kg and m 10 kg connected by an inextensible string over...

Calculus
1.2K views

The graph of f is given below Sketch the graph of f 10 8 642...

Algebra
1.2K views

What value of a makes the equation 2 6 PAARNE 64 9 true

Accounting
1.2K views

Fogerty Company makes two products-titanlum Hubs and Sprockets....

Accounting
1.2K views

1) Comfy Wheels Bus Company produce autobuses. Para producir los asientos de los autobuses, se...

Accounting
1.2K views

Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to...

Accounting
1.2K views

On January 1, 2015, ECT Co. adopted the dollar-value LIFO method for its one inventory...

Accounting
1.2K views

11681&cmid=1003939&page=35 nt Links Online Online n LSUS-Display Course Details page V 40 SUMMER2023 Week 3...