We can see that the prices has exchanged

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If the price of a call option is equal to $24.302 and the price of a put option is 14.677 with S = 100, volatility = 30%, r = 5%, dividends are 3%, T = 3, K = 95 and u use a binomial tree with n = 3.

Why is the price of a call option equal to $14.677 and of a put option equal to $24.302 with S = 95, volatility = 30%, r = 3%, dividends are 5%, T = 3, K = 100 and u use a binomial tree with n = 3.

We can see that the prices has exchanged, but demonstrate analytically that this is not a coincidence.

Reference no: EM131978763

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