HomeDefinitionsCompareDebt Put call parity relationshipThe financial definition for Put call parity relationship:The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C = S + P - PV(k). Similar MatchesExpected return beta relationshipExpected return beta relationshipImplication of the CAPM that security risk premiums will be proportional to beta. International Fisher relationshipInternational Fisher relationshipTheory that nominal interest rates and inflation rates in different countries are connected. The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation. Price volume relationshipPrice volume relationshipA relationship espoused by some technical analysts that signals continuing rises or falls in security prices that are related to changes in volume traded. Further SuggestionsPrincipal agent relationshipClick to compare definitions of Put call parity relationship Click to view definitions beginning pu |