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The put call parity dicusses the relationship between the price of stocks, bonds, puts, and calls but it is also a recipe for creating portfolios
The put call parity dicusses the relationship between the price of stocks, bonds, puts, and calls but it is also a recipe for creating portfolios that replicate assets
consider this, what would you do if you feel a stock is overvalued using the put call parity
what would you do if you feel a stock is undervalued using the put call parity
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