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#029easyOptions & Derivatives

Put-Call Parity Verification

Part of:Options & Derivatives → Put-Call Parity & Payoffs

Problem

Given a European call option with the following parameters, compute the corresponding European put option price using Put-Call Parity.

  • C = 10.4506 — European call option price
  • S = 100.0 — current spot price of the underlying
  • K = 100.0 — strike price
  • T = 1.0 — time to expiry (in years)
  • r = 0.05 — continuously compounded risk-free interest rate

Put-Call Parity states:

C−P=S−Ke−rTC - P = S - K e^{-rT}

Rearranging, the put price is:

P=C−S+Ke−rTP = C - S + K e^{-rT}

What is the put option price?

Enter your answer as a decimal rounded to 4 decimal places.

Constraints

  • •0.0 ≤ C ≤ 100000.0 (call price)
  • •1.0 ≤ S ≤ 10000.0 (spot price)
  • •1.0 ≤ K ≤ 10000.0 (strike price)
  • •0.01 ≤ T ≤ 10.0 (time to expiry in years)
  • •0.0 ≤ r ≤ 0.5 (risk-free rate)
  • •Output rounded to 4 decimal places
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