Financial Definition of Put-Call Parity Relationship
Meaning of 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 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).
Related Entries of Put-Call Parity Relationship in the Encyclopedia of Law Project
Browse or run a search for Put-Call Parity Relationship in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.
Put-Call Parity Relationship in Historical Law
You might be interested in the historical meaning of this term. Browse or search for Put-Call Parity Relationship in Historical Law in the Encyclopedia of Law.
Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Put-Call Parity Relationship in the Legal Abbreviations and Acronyms Dictionary.
Browse
You might be interested in these references tools:
| Resource | Description |
|---|---|
| Put-Call Parity Relationship in the Dictionary | Put-Call Parity Relationship in our legal dictionaries |
| Related topics | Browse topics from the World Wiki Encyclopedia of Law |
| Browse the Legal Thesaurus | Find synonyms and related words of Put-Call Parity Relationship |
| Legal Maxims | Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law |
| Legal Answers (Q&A) | A community-driven knowledge creation process, of enduring value to a broad audience |
| Related topics | Put-Call Parity Relationship in the World Encyclopedia of Law |
What is Put-Call Parity Relationship?
Vocabularies (Semantic Web Information)
| Resource | Description |
|---|---|
| Topic Map | A group of names, occurrences and associations |
| Topic Tree | A topic display format, showing the hierarchy |
| Sitemap Index | Sitemap Index, including Taxonomies |
| https://legaldictionary.lawin.org/put-call-parity-relationship | The URI of Put-Call Parity Relationship (more about URIs) |
Leave a Reply