A European call option with a strike price of $30.00 expires in 3 months. In put-call parity, what impact does the interest on the strike price have given 6.0% interest rates?
A)
Causes the call price to be $0.45 lower than the put price
B)
Causes the call price to be $0.90 lower than the put price
C)
Causes the call price to be $0.45 higher than the put price
D)
Causes the call price to be $0.90 higher than the put price
Answer:
C
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