call parity relationship what is
Meaning of Put-call parity relationship explanation. What is of a call on the same underlying.

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Put-call parity relationship definition

Meaning 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 underlying 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)

More terms such as Put-call parity relationship in Dictionary P.

Definition Principle Of Diversification:
Examples different sorts of assets differently correlated with one another will have negligible unsystematic risk. In other words, unsystematic risks disappear in diversified portfolios, and only systematic put-call parity relationship definition.
Definition Preemptive Right:
Examples Common stockholders' right to anything of value distributed by the company put-call parity relationship explain.
Definition Public Debt:
Examples Issues of debt by governments to compensate for a lack of tax revenues put-call parity relationship what is.
Definition Purchase Fund:
Examples Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value put-call parity relationship meaning.
Definition Perpendicular Spread:
Examples Option strategy involving the purchase of options with similar expiration dates and different exercise prices put-call parity relationship abbreviation.
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