Finance

A trader buys a European call option and sells a European put option. The options have the same underlying asset, strike price and maturity. Describe the trader's position. Under what circumstances does the price of the call equal the price of the put?

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asked by Julia
  1. Thank you for using the Jiskha Homework Help Forum. About all I know of the stock market is that it is doing very poorly! Hopefully something here will assist you:

    1. http://en.wikipedia.org/wiki/Put-call_parity

    2. (lawsuits): http://en.allexperts.com/q/Securities-Law-Lawsuits-931/2008/5/Buying-options-against-employee.htm

    3. http://www.infoplease.com/ce6/bus/A0840593.html

    4. http://www.forbes.com/2006/08/23/investools-options-ge-in_wh_0823investools_inl.html

    Sra

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    posted by SraJMcGin

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