What Is a Put-Call Parity?

The put-call option parity relationship is the relationship between the price of a call option and a put option for the same underlying instrument, with the same strike price and the same expiration date. In the case of cash distribution of the underlying assets and consideration of the time value of cash, the put-call option parity relationship of European options (similar to American options) can be expressed as:

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?