Identify and define three versions of put call parity

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Reference no: EM131324069

1. Identify and define three versions of put-call parity.

2. Using the Black-Scholes-Merton option pricing model and the generic carry formula for forward contracts (using continuous compounding), demonstrate that C_e(S₀,T,X) = C_e(f₀(T),T,X).

Reference no: EM131324069

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