The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PUTCALL PARITY Definition & Legal Meaning

Definition & Citations:

Relationships used to decide option prices that must remain to prevent arbitrage conditions. The sum price of the call option and strike price. This price must equal the sum of the put option and the asset. If this does not occur an arbitrage opportunity


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.