OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Put Call Parity'

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What is Put Call Parity in Options Trading ?

Put Call Parity
The fair Call and put pricing policy in prices so that the markets are not taken advantage of through price discrepancy arbitrage. Arbitrage opportunities are extremely rare as many hedge funds have extremely fast servers located in close proximity to primary exchanges to capture these opportunities within milliseconds.

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