Put-Call Parity Calculator

Your details

Choose which variable to calculate. All other fields are treated as known inputs.
Market price of the European call option.
per share
Current market price of the underlying asset.
per share
The exercise price specified in the option contract.
per share
Continuously compounded annualised risk-free interest rate. Use a Treasury yield matching the option expiry.
%
Time remaining until the option expires, expressed in years (e.g. 0.5 = 6 months).
years
Annualised continuous dividend yield. Leave at 0 for non-dividend-paying stocks. The parity equation becomes C - P = S*e^(-qT) - K*e^(-rT).
%
Currency
Solved valueParity holds
0.8668

The calculated value for the variable you chose to solve for.

Parity difference0
PV of strike (K*e^(-rT))90.3668
Dividend-adjusted spot (S*e^(-qT))100
Arbitrage signalNo arbitrage - parity holds
Left side (C - P)0.8668
Right side (S*e^(-qT) - K*e^(-rT))190.3668

Parity gap: 0

  • Solved value
  • Parity difference

Put-call parity holds - no arbitrage detected.

  • The implied put price consistent with no-arbitrage put-call parity is 0.8668.
  • The present value of the strike price discounted at the risk-free rate is 90.3668.
  • The undiscounted spot contributes 100.0000 to the right side of the parity equation.
  • These inputs are consistent with the no-arbitrage condition.

Next stepPut-call parity applies only to European options. American options can be exercised early, so this relationship does not hold exactly for them.

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