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

Put-call parity does not imply that put and call options have the same price; it relates their prices through a specific equation involving the stock price, strike price, risk-free rate, and time to expiration.

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