Put-call parity is a fundamental principle in options pricing that establishes a relationship between the prices of European put and call options with the same strike price and expiration date, asserting that the difference between the call price and the put price equals the difference between the underlying asset's current price and the present value of the strike price. This concept ensures no arbitrage opportunities exist in a perfectly efficient market, providing a cornerstone for understanding more complex options strategies. To delve deeper into this pivotal concept, I highly encourage you to explore the subsequent lessons.
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