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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. Holding the stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C=S+P-PV(k).

 
 

Follow this link for all the terms related to call.

 
 Embedded terms in definition
 Arbitrage
Call
Exercise price
Exercise
Expiration date
Expiration
Present value
Put
Security
Stock
Underlying security
Underlying
Will
 
 Related Terms
 

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