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Since American style options allow early exercise, put-call parity will not hold for American options (unless they are held to expiration). In practice, there is also a difference between calls and puts for European options as well. The full description is here: What causes the call and put volatility surface to differ?


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Quick answer, doing it with 5th grade math ^^: Assuming Forward = Spot = 50 for a 10% move = 5: Call: 55 / (1 + x) = 50 -> x = 10% Put: 45 * (1 + x) = 50 -> x = 11.11...% So the Call/Put ratio equaling (10% / 11.11...%) = .9 -> Premium -> 10% (1 - .9) ... I am only 13 years old so don't hate if I'm wrong :D



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