The put-call parity relationship is the relationship between the price of a call option and the price of a put option on the same underlying instrument, with the same strike price and the same expiration date.

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The put-call parity relationship is a fundamental principle in options pricing and states that there is a mathematical relationship between the price of a call option and the price of a put option on the same underlying instrument with the same strike price and expiration date. Specifically, the sum of the price of a call option and the present value of the strike price equals the sum of the price of a put option and the current price of the underlying asset.

The Put-Call Parity Relationship Is the Relationship Between the Price