Question
If C0+PV(X)>P0+S0, which side of put-call parity is overpriced?
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Answer
The fiduciary call side is overpriced.
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Question
If an option is at-the-money forward, what does put-call forward parity imply about call and put prices?
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Answer
If F0(T)=X, then C0=P0.
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Question
What is the standard put-call parity for European options on a non-dividend-paying stock?
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Answer
C0+PV(X)=P0+S0.
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Question
Why must a fiduciary call and a protective put have the same price under no-arbitrage?
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Answer
They have identical expiration payoffs, so they must be priced equally.
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