Question
I need steps for question 18&19, question 18 is True or False.
Put-Call Parity requires that the call option be written and put option be held on the same underlying stock Given the following information about call and put options, which put options would be considered in-the-money? Options A and B are both in-the-money Options A, B, and C are all in-the-money Options C, D, and E are all in-the-money Options D and E are both in-the-money No put options are in-the-money If you long a call with exercise price of $30 and short a call with exercise price of S32.50, and you put with exercise of $25 and short a put with exercise price of $15, and the current stock price $27.50,which of the following is/are most true?
Explanation / Answer
18) TRUE
19) FOR PUT IN THE MONEY IMPLIES STRIKE PRICE> SPOT PRICE
SO C ,D ,E I N THE MONEY