There is no arbitrage between the value of a European call and put options with same strike priceand expiry date on the same underlying asset. This is shown by

Question

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Principle of convergence

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Put-call parity pricing relationship

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Principle of divergence

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All the above

1.	There is no arbitrage between the value of a European call and put options with same strike priceand expiry date on the same underlying asset. This is shown by
A.	Put-call parity pricing relationship
B.	Principle of convergence
C.	Principle of divergence
D.	All the above
Answer» B. Principle of convergence

There is no arbitrage between the value of a European call and put options with same strike priceand expiry date on the same underlying asset. This is shown by

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