Put-call parity is essential in options pricing, as it highlights the required consistency between the prices of call and put options and the underlying asset. According to this principle, the call price plus the present value of the strike price of both options equals the stock price plus the put price. If you rearrange the terms, you will find that the put option price equals the price of call option minus the stock price plus the present value of the strike price.
This open-access Excel template is a useful tool for statisticians, financial analysts, data analysts, and portfolio managers.
Put-Call Parity: Valuing a Put Option is among the topics included in the Derivatives module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Derivatives course.
You can also explore other related templates such as—Black-Scholes Option Pricing Model: Valuing a Put Option, Put-Call Parity: Valuing a Call Option, and Options Pricing and Valuation: Binomial Model.
