# Tag Info

## Hot answers tagged put-call-parity

1

The put-call parity equation: $$c-p = S_0 - Ke^{-rT}$$ can be seen as a equality in cash flows--namely, buying a call and selling a put have equivalent cash flows to the underlying stock price less the strike price of the options. Taking this into $t=0$ means the current price of the call less the current price of the put must equal the present value of the ...

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