Consider a European call and a European put on the same underlying stock, each with the same strike K and the same expiration date T. Assuming interest rate is zero and the stock does not pay dividend, it's known that the following relationship (Put-Call Parity) holds: c - p = SO - K, where c, p and SO denote the current price of the call, put, and stock, respectively. Under this relationship, the long (European) call option can be replicated by shorting the underlying stock, borrowing the cash amount equal to the exercise price, and writing the put buying the underlying stock, borrowing the cash amount equal to the exercise price, and buying the put buying the underlying stock, borrowing the cash amount equal to the exercise price, and writing the put buying the underlying stock, lending the cash amount equal to the exercise price, and buying the put