Standard put-call parity formula
Description of the Standard put-call parity formula
Formula for the standard put-call parity
Formula
\[ C-P=S-E\cdot e^{-rT} \ \]
Symbols
\(C\ \)
Value of the call
\(E\ \)
Option strike price
\(P\ \)
Value of the put of same expiry and strike than the call
\(r\ \)
Continuously discounted money market rate for duration T
\(T\ \)
Duration (in year fractions) until the option's expiry
Additional information related to this formula
Related definitions from the glossary of financial terms
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Option strategy calculator • Pricing of an option (Black & Scholes)