Because of the put-call parity relationship, under equilibrium conditions a put option on a stock must sell at exactly the same price as a call option on the stock, provided the strike prices for the put and call are the same.

Question

Quizplus · Accepted Answer

The put-call parity relationship does not imply that put and call options must sell at the same price, but rather it defines a specific relationship between the prices of European put and call options with the same strike price and expiration date, involving the stock price and the strike price discounted at the risk-free rate.

Because of the Put-Call Parity Relationship, Under Equilibrium Conditions a Put