Anonymous asked in Social ScienceEconomics · 3 weeks ago

Suppose a European put price exceeds the value predicted by put-call parity. How could an investor profit?

Demonstrate that your strategy is correct by constructing a payoff table showing the outcomes at expiration

2 Answers

  • Oiy
    Lv 4
    3 weeks ago

    You do the inverse. First, you take your money out before the price has been put. Then get in.

  • 3 weeks ago


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