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Put-Call parity

Let ΠC(t;T,K), ΠP(t;T,K) and ΠF(t;T,K) be the prices at time t of a European call option, a European put option and a Forward respectively all with maturity T and strike K. The Put-Call parity says that
ΠC(t;T,K)-ΠP(t;T,K)= ΠF(t;T,K), for 0≤ t ≤ T.

 

Questions: Magnus Wiktorsson
Last update: 2010 Feb 17 10:32:18. Validate: HTML CSS

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