CFA Online Video Tutorial: Option Contracts:Put Call Parity

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This Video lecture was recorded by Mr. Utkarsh Jain, during his live CFA Level I Classes in Pune (India). This video lecture covers following key area's:
1. put-call parity for European options
2. how put-call parity is related to arbitrage and the construction of synthetic options.
A fiduciary call (a call option and a risk-free zero-coupon bond that pays the strike price X at expiration) and a protective put (a share of stock and a put at X) have the same payoffs at expiration, so arbitrage will force these positions to have equal prices: c + X / (1 + RFR)T = S + p.
This establishes put-call parity for European options.

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This guy is a life saver. Makes things so complex, seem like child's play

[@vs7412]

Thank you, awesome explanation! :)

[@andretuwan]

I found out this channel when i prepare for CFA level 1 that will conduct at 16 Jun.
and this is...
the best explanation i found out there.

[@johnfields6878]

wish I would've found it earlier too

[@himanshuawasthi1640]

Thanks for this simplest most yet best explanation I have ever seen

[@DaSnipy]

How do you buy such a bond? First 3 items are available .. stock call and put .. but which bond are you exactly talking about? .. can you please give me any ISIN examples from NSE of such bonds? thanks

[@agednutz]

Smoke Pot Be Cool would have been more appropriate haha

[@rupertgarner9743]

Incredible how clear these guys make concepts.... I wish I could go to India for their course instead of reading Schweser...

[@FintreeIndia]

Dear Rupert,
We're glad you like our content! We offer the FinTree Online Program for anyone outside India who wishes to study the CFA Program. If you wish to enquire further, you may email us anytime at [e-mail]. Visit us at www.fintreeindia.com to see all our courses.
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[@venkatachiranjeevi2986]

there is no space for rolls Royce to drive delhi old streets , but you created enough space for journey

[@pratheeshbnair4115]

I have a question. Is Put call parity only applicable to expiration time payoff from put/ call or it is applicable to put/call premium pays at inception too? Can anybody help pls

[@AbhirupDutta]

This parity is only applicable on European options. European options can only be exercised at expiration.

[@caaatifbhiwani5727]

Life saver any point of time... Sip Pepsi be cool

[@mawtrader87]

thanks mate, much clearer than the books!

[@deepaknaidu1468]

Sir i have one doubt, the premiums paid while buying call and put options will not be same rite...? then how can the protective put and fiduciary call will be equal at any point of time.

[@subhankar.prabir]

same doubt

[@karansharma-wn1qz]

@@subhankar.prabir they does not hqve to be equal. This equation talks about if the output is same then the price should also be same as the equation

[@babuji9950]

commendable explanation

[@alaataktokani8884]

very informative, great thanks

[@kentaprises]

Amazing clarity. Thank you.

[@Kencan254]

Get rid of that annoying Indian accent.

[@antorsaha10]

very simply explained and very effective.
Thanks for your effort

[@samarmirza1235]

This was so simple. I wasted so much time understanding things from book. Should have seen this earlier.😵‍💫

[@vershaskitchen6059]

Sir can you make videos on these topics please.. ACF and PACF , White noise , Arma model and Invertibility..

[@黃銘諾]

best explanation i have seen

[@FintreeIndia]

Thank you!
Regards,
Utkarsh

[@KrishnaFlute17895]

Thankyou so much...

[@goldboateng8073]

YOU ARE A LEGEND

[@satishsubramanian2816]

What happens if I have a different risk free rate and others so will my assumptions turn wrong

[@subirsengupta9308]

Super se bhi upar sir

[@sanket7_]

Genius!

[@asmomair]

Amazing and thrilling to watch your explanation! Making complex ideas so simple!

[@amg2996]

brilliant - thank you for this. Would the parity hold if the risk free rate turned negative ?

[@DEEPAKSINGH-qm2gr]

Excellent explainatin🙏

[@rockhop8595]

i watched a few videos on call put parity and this one is the best by far

[@shubhankar5719]

Fabulous way of explaining
Thank you for this one 🙏

[@makk3480]

best explanation sooo far! thanks man :-)

[@ilu078]

Literally WOW was the word which came out!

[@mitinsukhwani5984]

Sir u r god to me thanks a lot with whole of my heart

[@takashisan1]

Genius !

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Thanks so much. This makes my life easier !

[@bccastaneda11]

Best explanation ever‼️ thank you‼️

[@vipinkeshwani4292]

good work
very fine sxplanation

[@MithunKannan23]

Thankyou for this.

[@0886-v4p]

Best explanation ever!

[@kishanmarvania7155]

Just Amazing! Thank you Sir!

[@rishigautam9295]

Very nicely explained

[@CASudhirKumar]

Explained really nice. Thanks.

[@BykBiiBlah]

Thank you so much

[@vishnushankar5922]

Thanks for this

[@smitawale4416]

sir nice one kindly upload ethics videos
Thanks a lot

[@FintreeIndia]

smita wale Happy that it helped. We don't have many ethics video's on youtube yet.But you can have a look at following video : ruclips.net/video/FwOEKARLWE8/видео.html

[@zakariaa4507]

Thank you man ! !!

[@Mms-mq8mz]

awesum explanation

[@DeepakSharma-wz2fb]

Thanks you sir

[@nabeelakhader4690]

Amazing!

[@vipinkeshwani4292]

explanation