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Put-call parity — concept

About this app

Long call + short put = forward: two kinked payoffs add up to the perfect straight line S − K — the addition stack at the spot marker shows it pointwise. In the values panel C − P = S₀ − K·e^(−rT): turning σ changes C and P, never the difference. Debunks “calls and puts are independent products”.

Subject: Financial derivatives

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