put-call-parity

  1. Nicole Seaman

    YouTube T3-34: Put-call parity

    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) David's XLS is here...
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