Folder:
115 CFA
File:
115.080.02.10 - Reading 49 - 10. Put-Call-Forward Parity

10. Put-Call-Forward Parity

m. explain put-call-forward parity for European options;

What is put-call parity for options on forward contracts (put-call-forward parity)?
A put-call-forward parity involves buying a call and bond (fiduciary call) and a synthetic protective put, which requires buying a put option and a forward contract on the underlying that expires at the same time as the put option.

(this section will need more understanding, lots of examples given)


Source:
  • CFA