https://gdpark.blog/tags/put-call-parity/Recent content in Put-Call Parity on gdpark.blogHugoenSat, 17 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/financial-engineering-03-put-call-parity/Wed, 07 Sep 2016 00:00:00 +0000https://gdpark.blog/posts/financial-engineering-03-put-call-parity/Before jumping into the binomial model, we lock in put-call parity — the neat reason knowing a European call’s price automatically pins down its put, and vice versa.https://gdpark.blog/posts/derivatives-11-properties-of-stock-options/Mon, 28 Nov 2016 00:00:00 +0000https://gdpark.blog/posts/derivatives-11-properties-of-stock-options/Breaking down every variable that moves option prices — S, K, T, σ, r, and D — and why European vs. American options handle time to expiration differently.https://gdpark.blog/posts/derivatives-12-options-practice-problems/Mon, 28 Nov 2016 00:00:00 +0000https://gdpark.blog/posts/derivatives-12-options-practice-problems/Working through options pricing problems — lower bounds on calls and puts, why American options always beat intrinsic value, and when put-call parity breaks down.https://gdpark.blog/posts/derivatives-19-stock-index-options-and-currency-options-practice-problems/Sat, 17 Dec 2016 00:00:00 +0000https://gdpark.blog/posts/derivatives-19-stock-index-options-and-currency-options-practice-problems/Practice problems on currency and stock index options — lower bounds, put-call parity, Black-Scholes puts, and hedging a portfolio with index puts.