Options Glossary

Glossary: Put Call Parity

Last Updated: July 12, 2015


Put Call Parity

What Does Put Call Parity Mean in Options Trading?

The fair Call and put pricing policy in prices so that the markets are not taken advantage of through price discrepancy arbitrage. Arbitrage opportunities are extremely rare as many hedge funds have extremely fast servers located in close proximity to primary exchanges to capture these opportunities within milliseconds.

Related Options Trading Terms

homeusercrossmenuarrow-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram