Explain why the put-call parity equation may now be


Suppose that the borrowing rate rb is greater than the rate of interest on bills, rf. Explain why the Put-Call Parity equation may now be violated without giving rise to an arbitrage opportunity. ?Show that the equation can be replaced by a pair of inequalities which together must hold if there is to be no arbitrage opportunity.

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Financial Management: Explain why the put-call parity equation may now be
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