What is Put Call Parity? How does it work?

[@nanazinhaamaral]

CFA Level 1 Canditade here. This was LIFE SAVING! Really clear and simple explanation. Thank you!

[@debamalyabarman8142]

I gave my exam today. All the best!

[@PBoyle]

Apologies for the low quality video on this one. I'll try to re-record it soon but in focus. :)

[@joesmith3590]

The more complex it is the better you explain it. Thought I knew a lot and learned a lot still.

[@JamesonSharp]

LOVE YOUR CHANNEL!! Im a Finance Guy in Kansas City. Im doing Parity Calculaitons for Bonds and Stocks today for my 65. Love the channel! 🙂

[@GubeTube19]

Thanks Patrick! Very helpful 😁

[@jeffshackleford3152]

Do you have any " practice problem" resources, like in math class? I would like to do some so I can fully understand the way those equations work

[@ron.llena95]

Well put together. Thank you very much!

[@samholder196]

fantastically simple thanks

[@SusieAspen]

Could you do a video on the differences between the worldwide stock markets? Is there an advantage that one has over the over? Are there requirements for using foreign exchanges, such as citizenship or special tax forms? Is a person double taxed on profits--once in the foreign country and then the home country?

[@kaho8103]

Sorry if it is a dumb question, how do I find the interest rate?

[@PBoyle]

you can use the t bill rate or LIBOR

[@DJREKing1]

what could be an outcome is this formula is practiced on American options

[@FinancialApe]

You would have to assume that you're American option is held until expiration.

[@Adrian-ti4wy]

Hey Patrick, quick question: does put-call parity saying implied volatility of put and call European option with the same underlying, strike price, and expiration must equal? If so why there are so many European options with different IVs between put and call?

[@75pdubs]

The formula doesn’t state anything about IV. The put and call for the same strike/expiration have about the same IV. The differences are negligible with bid ask and commissions. Maybe in the 70s there was an arb when option theory wasn’t well understood. But with computers screening for mispricings that arb doesn’t exist anymore.

[@marcellosansonetti7951]

Thanks Patrick for all the valuable informations you are sharing !!

[@PBoyle]

Thanks Marcello, glad you find it useful.

[@FinancialApe]

Great video!

[@fuhat1040]

when is the audio book

[@poohshmoo9892]

i understand the theoretical example but does it ever happen in real life?