Prove put-call parity for european options

Reference no: EM131458054

Question: Prove put-call parity for European options in the case of a single known dividend:

c + PV(Div) + Ke^-rT = p + S

where S is stock price, K is strike price, T is maturity date for the option, r is risk-free interest rate, c is European call price, p is European put price, and PV(Div) is the present value of dividends.

Reference no: EM131458054

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