Put-call parity

0.01 sec.

Put-call parity

Applies to derivative products. Option pricing principle that says, given a stock's price, a put and call of the same class must have a static price relationship because arbitrage opportunities or activities will always reestablish such a relationship.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Put-call parity relationship			Put-Call Parity This section briefly describes the put-call parity, which relates the price of stocks, bonds, put options, and call options. Naked and covered in Monte Carlo: a reappraisal of option taxation by Chason, Eric D. / Virginia Tax Review Ofek, Richardson, and Whitelaw empirically investigate the well-known put-call parity no-arbitrage relation in the presence of short sale restrictions. Asset Pricing. (Conferences) by NBER Reporter Put-Call Parity Occasionally a trader who intends to take a position in the futures market, either as part of a hedging or a speculative strategy, may find that he can construct an identical position in the options market, and at the same time do so at a more favorable price than the futures position. Put-call parity by Natenberg, Shelly / Tea & Coffee Trade Journal			Pure Monopoly pure notice statute Pure Play pure race statute Pure Risk Pure Yield Pickup Swap Purpose Credit Purpose Loan Purpose Statement Push Money Put Put an Option Put Bond Put Guarantee Letter Put On Put Option Put Price Put Provision Put Ratio Backspread Put Spread Put Swaption Put To Seller Put Together Put up Put Warrant Put-call parity Put-call parity relationship Put-Call Ratio Puttable Common Stock Putto Opushon PV PVBP PW PY Pya PYG Pylon Pyramid Pyramid scheme Pyramiding Pyrrhic Victory Q Q & A Format Q Ratio Q ratio or Tobin's Q ratio Q Schedule Q-Rating QA Qadaa Qai-Qabaalah QAR			put upon put upon put upon by put upon record Put Warrant Put Warrants put wear on put weight on put weight on some part of the body put words in mouth put words into mouth put words into mouth put words into mouth put words into mouth put words into mouth put years on put years on put years on put years on put years on Put Your Ass in the Know Put your hands up for detroit put your heads together put your heads together put your heads together put your heads together Put Your Money Where Your Mouth Is Put your money where your mouth is! Put your trust in God, and keep your powder dry Put Yourself in My Place Put-call parity Put-call parity relationship Put-call ratio Put-Call Ratios put-down put-downs put-in put-in Put-In Bay Put-in-Bay Put-in-Bay, Ohio put-ins put-ins Put-off put-on put-ons Put-out Put-out Put-outs Put-outs put-put put-puts put-putted put-putting put-to-sleep put-up put-up job put-upon put-you-up

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.