Put–call parity basically says that combination of a stock and a put produces the same return as the comparable position in a call and a risk-free bond. If not, at least one market is in disequilibrium. The resulting arbitrage alters the securities’ prices until the value of the stock plus the put equals the prices of the call and the bond. Put–call parity also demonstrates that a short position in the stock is mimicked by short positions in the call and the bond and a long position in the put. Currently, the price of a stock is $100 while the price of a call option at $100 is $9; the price of the put option at $100 is $3, and the price of a discounted bond is $94. Verify that a short position in the stock produces the same performance as a short position in the call and the bond plus a long position in the put.