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 Prime Rate Fund:
- Examples A mutual fund that buys portions of corporate loans from banks and pays the interest to shareholders put-call parity relationship definition.
- Definition Performance Shares:
- Examples given to managers on the basis of performance as measured by earnings per share and similar criteria. A control device shareholders sometimes use to tie management to the self-interest of put-call parity relationship explain.
- Definition Private Export Funding Corporation (PEFCO):
- Examples mobilizes private capital for financing the export of big-ticket items by U.S. firms by purchasing at fixed interest rates the medium- to long-term debt obligations of importers of U.S. products put-call parity relationship what is.
- Definition Pattern:
- Examples A technical chart formation used to make market predictions by following the price movements of securities put-call parity relationship meaning.
- Definition Policy Limit:
- Examples The maximum dollar amount of coverage provided by an insurance company for a certain policy put-call parity relationship abbreviation.
