header bg

Scan QR code or get instant email to install app


Given the put-call parity relationship, a synthetic underlying asset can be created by forming a portfolio of a:

A long call, short put, and long risk-free bond.

An asset underlying put and call options can be replicated with a long European call option, a short European put option, and a long position in a risk-free bond that pays the exercise price on the expiration date.

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *