Put-Call Parity
Tags: #Financial #EconomicsEquation
$$c(S_{t}, K, t, T) - p(S_{t}, K, t, T) = F^{P}_{t,T}(S) - Ke^{-r(T-t)}$$Latex Code
c(S_{t}, K, t, T) - p(S_{t}, K, t, T) = F^{P}_{t,T}(S) - Ke^{-r(T-t)}
Have Fun
Let's Vote for the Most Difficult Equation!
Introduction
Equation
Latex Code
c(S_{t}, K, t, T) - p(S_{t}, K, t, T) = F^{P}_{t,T}(S) - Ke^{-r(T-t)}
Explanation
Latex code for the Forwards Contracts. I will briefly introduce the notations in this formulation. Call options give the owner the right, but not the obligation, to buy an asset at some time in the future for a predetermined strike price. Put options give the owner the right to sell. The price of calls and puts is compared in the following put-call parity formula for European options.
: Price of call option c
: Price of put option p
: the present value of the strike price (x),
:
Related Documents
Related Videos
Discussion
Comment to Make Wishes Come True
Leave your wishes (e.g. Passing Exams) in the comments and earn as many upvotes as possible to make your wishes come true
-
Norma HarveyOh, how I wish to conquer this exam.Susan Miller reply to Norma HarveyGooood Luck, Man!2023-08-06 00:00 -
Jeffrey YoungThe goal is clear: pass this exam.Anthony Thomas reply to Jeffrey YoungGooood Luck, Man!2024-04-26 00:00 -
Gary AdamsI really don't want to fail this test.Jason Hall reply to Gary AdamsGooood Luck, Man!2023-12-28 00:00
Reply