Put call parity formula derivation

Put–call parity - Wikipedia

I'm not really sure why we can say this is the futures payoff when the futures payoff is: It's more of a wordplay, than anything substantial to the case. If market is lower then strike, counterparty exercises the put against you and again you have long position.

So no matter what, you end up with long position this is called creating synthetic position.

Simply, you sort out what's the value of "agreeing to buy X in the future for price K" and whether you discount the option price, and these product-specific things. By posting your answer, you agree to the privacy policy and terms of service.

put call parity : definition of put call parity and synonyms of put call parity (English)

Sign up or log put call parity formula derivation to customize your list. Stack Exchange Inbox Reputation and Badges.

Put-Call Parity

Questions Tags Users Badges Unanswered. Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. Tanzania stock exchange market capitalization them; it only takes a minute: Here's how it works: Anybody put call parity formula derivation ask a question Anybody can answer The best answers are voted up and rise to the top.

In Hull, the following derivation of PCP for futures options: Sign up or log in StackExchange. Sign up using Facebook.

Sign up using Email and Password. Post as a guest Name. Quantitative Finance Stack Exchange works best with JavaScript enabled. MathOverflow Mathematics Cross Validated stats Theoretical Computer Science Physics Chemistry Biology Computer Science Philosophy more 3. Meta Stack Exchange Stack Apps Area 51 Stack Overflow Talent.