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Corporate Finance · End Term · 13 Apr 2025 · January 2025 term

Question 35: Consider a put option and a call option with same strike…

Question 35

+4 marksOne or more correct options

Consider a put option and a call option with same strike price and time to maturity. Which of the following statements is correct?

Select all that apply.

  1. A

    If the put option is in the money, the call option will be in the money.

  2. B

    If the call option is in the money, the put option will be out of the money.

  3. C

    If the put option is at the money, the call option will also be at the money.

  4. D

    If the call option is at the money, the put option will be out of the money.

Show answer

Correct answers

  • B

    If the call option is in the money, the put option will be out of the money.

  • C

    If the put option is at the money, the call option will also be at the money.

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Question 35 of 35 in the IIT Madras BS Corporate Finance (Corporate Finance) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT AN EXAM QIM3 13 Apr 2025). It carries 4 marks.

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