Put-Call Parity Arbitrage
European put and call prices are related through put-call parity, which specifies that the put price plus the price of the underlying equals the call price plus the present value of the strike price. The genius of option theory and structure is that two instruments, puts, and calls, are complementary with respect to both pricing and valuation. Therefore, by knowing the value of a put option you can quickly calculate the value of the complimentary call option (with the same strike price and expiration date) or vice-versa. There are many reasons that this is important knowledge for traders and investors. It can highlight profitable opportunities that present themselves when option premiums are out of whack.
Created by: Nikita
Interested in building, analyzing and managing Portfolios in Excel?
Download our Free Portfolio Template
Call: 1-877-778-8358 
Welcome! I'm Ankur, the founder and CEO of MarketXLS. With more than ten years of experience, I have assisted over 2,500 customers in developing personalized investment research strategies and monitoring systems using Excel.
I invite you to book a demo with me or my team to save time, enhance your investment research, and streamline your workflows.
I invite you to book a demo with me or my team to save time, enhance your investment research, and streamline your workflows.
Implement "your own" investment strategies in Excel with thousands of MarketXLS functions and templates.
MarketXLS provides all the tools I need for in-depth stock analysis. It's user-friendly and constantly improving. A must-have for serious investors.
I have been using MarketXLS for the last 6+ years and they really enhanced the product every year and now in the journey of bringing in AI...
MarketXLS is a powerful tool for financial modeling. It integrates seamlessly with Excel and provides real-time data.
I have used lots of stock and option information services. This is the only one which gives me what I need inside Excel.
