Can we use Call Put Parity on American Options?


Can we use Call Put Parity on American Options?

Author
Message
Gordon Ho
Junior Member
Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)Junior Member (13 reputation)

Group: Forum Members
Posts: 8, Visits: 75
I believe it does not apply to dividend paying stock. However, how about non-dividend paying stock?

[NEAS: Exercising a call option early is not optimal unless the stock pays dividends. But exercising a put option early may be optimal – especially if the stock does not pay dividends, so put call parity does not apply in the simple form shown in the textbook.]




Gordon


Edited 12 Years Ago by NEAS
GO
Merge Selected
Merge into selected topic...



Merge into merge target...



Merge into a specific topic ID...





Reading This Topic


Login
Existing Account
Email Address:


Password:


Social Logins

  • Login with twitter
  • Login with twitter
Select a Forum....











































































































































































































































Neas-Seminars

Search