Which of the following is consistent with put-call-spot parity?
A) S + C = P + X/(1 + RFR)
B) S + P = C + X/(1 + RFR)
C) S - C = P + X/(1 + RFR)
D) S - P = C + X/(1 + RFR)
E) S = P - C + X/(1 + RFR)

Name: Which of the following is consistent with put-call-spot parity? A) S + C = P + X/(1 + RFR) B) S + P = C + X/(1 + RFR) C) S - C = P + X/(1 + RFR) D) S - P = C + X/(1 + RFR) E) S = P - C + X/(1 + RFR)
Brand: Quizplus
Rating: 5.0 (35 reviews)

Question

Quizplus · Accepted Answer

Put-call-spot parity is given by the equation S + P = C + X/(1 + RFR), which is exactly option B.

Which of the Following Is Consistent with Put-Call-Spot Parity