CFA Online Video Tutorial: Option Contracts:Put Call Parity

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We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with!

This Video lecture was recorded by our Lead Trainer for CFA, Mr. Utkarsh Jain, during one of his live Session in Pune (India).

To know more about CFA/FRM training at FinTree, visit:
fintreeindia.com To know more about CFA/FRM training at FinTree, visit: fintreeindia.com

For more videos visit: youtube.com/c/FintreeIndia?sub_confirmation=1


CFA | FRM | Financial Modeling
Live Classes | Videos Available Globally

Follow us on:
Facebook: facebook.com/FinTree/
Instagram: instagram.com/fintreeeducation/?hl=en
Twitter: x.com/askFinTree
Linkedin: linkedin.com/company/fintree-education/

We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with!

This Video lecture was recorded by our Lead Trainer for CFA, Mr. Utkarsh Jain, during one of his live Session in Pune (India).

To know more about CFA/FRM training at FinTree, visit:
fintreeindia.com We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture series, visit us at www.fintreeindia.com

This Video lecture was recorded by Mr. Utkarsh Jain, during his live CFA Level I Classes in Pune (India). This video lecture covers following key area's:

1. put-call parity for European options

2. how put-call parity is related to arbitrage and the construction of synthetic options.

A fiduciary call (a call option and a risk-free zero-coupon bond that pays the strike price X at expiration) and a protective put (a share of stock and a put at X) have the same payoffs at expiration, so arbitrage will force these positions to have equal prices: c + X / (1 + RFR)T = S + p.

This establishes put-call parity for European options.