In financial mathematics, the put–call parity defines a relationship between the price of a European call option and European put option

11 июн. 2024 г. · Put-call parity refers to a principle that defines the relationship between the price of European put and call options of the same class. What Is Put-Call Parity? · Understanding Put-Call Parity

1 нояб. 2024 г. · Put-call parity is a principle in options trading that refers to the prices of puts and calls for the same underlying asset.

The put-call parity relationship shows that a portfolio consisting of a long call option and a short put option should be equal to a forward contract with the ...

Put/call parity says the price of a call option implies a certain fair price for the corresponding put option with the same strike price and expiration.

According to the Put-call parity, this is equivalent to having one future contract of the same asset and same date of expiry, and future price that is the same ...

The prices of puts and calls are inextricably linked to each other and the price of the underlying stock through an equation known as “Put/Call Parity”.

Consider the following two portfolios: 1. European call plus Ke-rT of cash. 2. European put plus long futures plus cash equal to F0e-rT.

The put-call parity formula for futures options adjusts for the nature of futures pricing. Instead of reflecting the current spot price, we use the discounted ...