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Put-call Parity
A principle in options pricing that shows the relationship between European put and call options with the same strike price and expiration date.
Risk-free Rate
The risk-free rate is the theoretical return of an investment with zero risk, representing the interest an investor would expect from an absolutely risk-free investment over a specified period.
Exercise Price
Also known as the strike price, it is the price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Put-call Parity
A financial principle stating the relationship between the price of European put and call options with the same strike price and expiration date.
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