# Put-call parity relationship

**Definition:** [crh] The relationship between the price of a put and the price of a call on the same underlying security with th**Definition:** e same expiration date, which prevents arbitrage opportunities. Holding the underlying **Definition:** stock and buying a put will deliver the exact payoff as buying one call and investing the Definition: EF="/?rd=present value+(PV)">present value (PV) of the exercise price. The call value equals C = S + P - PV(k).

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