Put-call parity

Put-call parity relationship
The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities.

Put-call parity is a relationship, first identified by Stoll (1969), that must exist between the prices of European put and call options that both have the same underlier, strike price and expiration date.

Put-call parity
Put call parity is a relationship between the prices of European call and put options on the same underlying with the same expiry and strike price:
p + s = k + c ...

Put-call parity implies:
Equivalence of calls and puts: Parity implies that a call and a put can be used interchangeably in any delta-neutral portfolio.

Put-Call Parity Theorem - An equation representing the proper relationship between put and call prices.
Glossary
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Put-call parity
The relationship between the value of a European call option and a European put option, where the two options are written on the same underlying, with the same strike price and the same maturity.

Put-call parity
Applies to derivative products. Option pricing principle that says, given a stock's price, ...

Put-Call Parity
A principle referring to the static price relationship, given a stock's price, between the prices of European put and call options of the same class (i.e. same underlying, strike price and expiration date).

The concept of put-call parity1 illustrates that the three main types of Islamic finance outlined above represent different ways of recharacterizing conventional interest through the attribution of economic benefits from the ownership of an existing ...

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See also: Exercise price, Banks, Receiver, Call price, Investment risk