Put-Call Parity Relationship

Put-Call Parity Relationship
Link between the call price and put price on the same underlying security with similar expiries. This eliminates any opportunity of arbitrage.

Purchase of a call option and investment in present value exercise price will give same benefits as keeping the stock and purchasing a put option on it.

Related posts:

  1. Covered Call
  2. Provisional Call Feature
  3. Uncovered Call
  4. Purchasing Power Parity
  5. Call Option

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