The price or value of the call option should be equal to price (or value) of creating a replicating portfolio. But why?

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

The price or value of the call option should be equal to price (or value) of creating a replicating portfolio. But why?

Post by answerhappygod »

The price or value of the call option should be equal to price
(or value) of creating a replicating portfolio. But why? What would
happen if the prices were not equal?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”