_________is when the price of a call equals the cost of a physical security holding minus the price of the corresponding put.
A) The intrinsic value
B) Gamma delta equality
C) A butterfly spread
D) Put call parity

Question

Quizplus · Accepted Answer

Put call parity is a financial principle that defines a relationship between the price of European call options and European put options of the same class, strike price, and expiration date. It states that the price of a call option equals the cost of a physical security holding minus the price of the corresponding put option.

_________Is When the Price of a Call Equals the Cost