Module 1 · Lesson 6 · 8 min

Moneyness and put-call parity

What you'll be able to do

  • Write put-call parity, define every term, and check it against a chain.
  • Build a synthetic long or short stock position from a call and a put, and compare it with the stock.
  • Explain why a quote that seems to break parity is often not free money.

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