Work out put call parity instantly with clear inputs, formula shown and shareable results.
Put-call parity states that a call minus a put equals the spot minus the discounted strike, because both sides deliver the same payoff at expiry. Any deviation is a riskless arbitrage, which is why the relationship holds tightly in liquid markets.
Put-call parity
C - P = S - Ke^(-rT)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because breaking it creates a risk-free profit that traders arbitrage away within seconds.
Only approximately. Early exercise rights, mainly on puts and around dividends, break exact parity.