Put-Call Parity

Put-call parity is nothing more than an equation that shows how the price of a (European) put option (on, say, a stock) relates to the price of a (European) call option (on the same stock).  The equation arises from a simple finance fact: If, given any set of circumstances, portfolio A and portfolio B have […]

To access this post, you must purchase CFA® Level I Membership.