Option price calculator
Black-Scholes value of a call and a put.
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Put-call parity calculator
Whether a call and a put on the same strike are priced in line with each other.
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The options
The check
The call is about 0.23 dear against the put: call minus put is +0.60, parity says +0.37.
- Fair put from the call
- 2.83 (you typed 2.60).
- Fair call from the put
- 2.97 (you typed 3.20).
- Synthetic shares
- Buying the call and selling the put costs 0.60 a share and moves like the shares bought at 100.60 on expiry, against 100.00 today.
- The gap
- In theory a conversion (buy the shares, buy the put, sell the call) would capture about 0.23 a share, $23.08 a contract, before commissions, spreads, borrowing and early exercise. Gaps this small usually vanish after them.
Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning
Educational only, not financial advice; trading involves risk.
Two options, one share
A bought call and a sold put with the same strike and expiry pay the same as owning the shares and owing the strike on expiry. So the call minus the put has to equal the share price minus the strike paid later, less any dividends. That is put-call parity: if it breaks by more than the costs, traders buy the cheap side and sell the dear one until it closes.
It holds exactly for European options. American options on stocks that pay dividends can be exercised early, which bends it a little, and wide bid-ask spreads hide most apparent gaps. Price each option alone with the option price calculator, back out the volatility with the implied volatility calculator, and see the payoff of a call or put with the options profit calculator.
Not advice. Arithmetic on the prices you type; real trades pay spreads, fees and borrow costs.
Next tools
Implied volatility calculator
The volatility and move an option price carries.
Options profit calculator
A call or put at expiry: break-even, most to make and lose.
Pricing
Three ways in. Pick yours.
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Baroq never holds your money and never trades for you. Educational only, not financial advice; trading involves risk.