Difference between revisions of "Fundamental relation between call and put"

Revision as of 18:38, 27 August 2020

Fundamental relation between call and put

@@ Line 1: / Line 1: @@
-In the picture below you can see a fundamental relation between a call and a put:
+Fundamental relation between call and put
-<html><img src = "/static/files/MBI/Module%2013/fundamentaloptionrelation.png" width="800"/></html>
-{{{
-Buying share + Buying a put = Depositing the prevent value of the exercise price in the bank + Buying a call
-}}}
-In human language this means that:
-* Buying a call and saving the money of the exercise price
-Is the same as
-* Buying a put and buying the share
-Other forms of this relationship are:
-{{{
-Value of the put = Value of the call + Present value of exercise price - share price
-}}}
-Buying a put is identical to:
-* Buy a call
-* Invest present value of exercise price in safe asset
-* Sell share
 [[Category:finance]]