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Put-call parity (T3-34)

Bionic Turtle 17,973 7 years ago
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[my XLS is here https://trtl.bz/2IzY0ui] We can synthesize stock ownership with a synthetic forward plus cash: S(0) = (c-p) + K*exp(-rT). That's put-call parity! My memorization mnemonic is "call plus cash equals protective put:" c + K*exp(-rt) = p + S(0). Discuss this video here in our FRM forum: https://trtl.bz/2LNdIYg.

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