Put-Call Parity option, written, question

jlg1982

I've studied this topic a few times now, but am struggling to conceptualize what kind of question could be/would be asked on it?

I know that a value of a portfolio with a call option and a zero coupon bond is the same as a portfolio with a put option and the asset, but what kind of question can be written about this?

Thanks for all the help

spartanag07

I've seen questions where they give you the values for the Put, Call, stock and risk-free rate. They ask you what the investor should do base on the Put-Call parity relationship.

Buy stock and Put, sell call and bond
Buy Call and bond, sell put and stock, etc......

Hope that helps...

dcfox83

mnieman Wrote:
-------------------------------------------------------
>
>
> I know that a value of a portfolio with a call
> option and a zero coupon bond is the same as a
> portfolio with a put option and the asset, but
> what kind of question can be written about this?
>
> Thanks for all the help


If you've got that memorized you can just rearrange those variables to create a synthetic position in either the call option, put option, risk free, or the asset.

Daniel1985

paula is a sexy x-rated cougar....

CP