Draw the payoff diagrams at maturity for the following two portfolios:

(i) A long call at strike K and a short put at strike K, both options have the same maturity

(ii) A long stock plus a borrowing of the present value of the strike K. The payoff of this portfolio is the cash-flow received at maturity from an unwinding of the positions in the portfolio.

Compare your two payoff diagrams and justify that this gives the call-put parity conditions