Standard put-call parity formula
Financial acronyms
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Description of the Standard put-call parity formula
Formula for the standard put-call parity
Formula
\[ C-P=S-E\cdot e^{-rT} \ \]
Symbols
\(C\ \)
Value of the call
\(E\ \)
Option strike price
\(P\ \)
Value of the put of same expiry and strike than the call
\(r\ \)
Continuously discounted money market rate for duration T
\(T\ \)
Duration (in year fractions) until the option's expiry
Additional information related to this formula
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