15. Put-Call Parity (LO4, CFA2) One thing the put-call parity equation tells us is that given any...
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15. Put-Call Parity (LO4, CFA2) One thing the put-call parity equation tells us is that given any three of a stock—a call, a put, and a T-bill—the fourth can be synthesized or replicated using the other three. For example, how can we replicate a share of stock using a put, a call, and a T-bill?
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Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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