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imported>Doug Williamson |
imported>Charles Cresswell |
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| Put-call parity theory links put and call option values via ‘no arbitrage’ assumptions and the related underlying asset price, strike price, time to maturity, and risk-free rate of return.
| | The minimum number of members/ persons who are required to be present in order to legally transact or conduct business. |
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| So for example if the put option value, underlying asset price, strike price, time to maturity, and risk-free rate of return are known, then the call option value can be calculated using the put-call parity relationship:
| | == See also == |
| | | * [[Company]] |
| Underlying asset price + Put value less Call value = Present Value of strike price.
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| In the special case where the strike price of the options is equal to the forward price of the underlying asset, the Put value and the Call value are exactly equal.
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| == See also ==
| | [[Category:Legal_Documentation]] |
| * [[Arbitrage]]
| | [[Category:Regulation_and_Law]] |
| * [[CertFMM]]
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| * [[Option]]
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| * [[Risk free rate of return]]
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Revision as of 16:30, 18 June 2013
The minimum number of members/ persons who are required to be present in order to legally transact or conduct business.
See also
