Put-call parity is the relationship between the prices of the underlying stock, a call option, a put option, and a riskless asset.

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Put-call parity is a fundamental principle in options pricing that establishes a relationship between the price of a European call option and a European put option with the same strike price and expiration date on the same underlying asset, factoring in the current price of the asset and the price of a risk-free bond that matures on the option expiration date.

Put-Call Parity Is the Relationship Between the Prices of the Underlying