What is put call parity ? Y @ the money option strick price premium will be same in both put option and call options

Shreesha .T.u

Shreesha .T.u

CA Foundation


04-Dec-20 13:34


Answers (1)

Best Answer

No . That is not the meaning Put-call parity is a principle that defines the relationship between the price of European put options and European call options of the same class, that is, with the same underlying asset, strike price, and expiration date. Put-call parity states that simultaneously holding a short European put and long European call of the same class will deliver the same return as holding one forward contract on the same underlying asset, with the same expiration, and a forward price equal to the option's strike price. you can check more about it here:

Sriram Somayajula

Sriram Somayajula


04-Dec-20 13:55