Put-call parity defines the relationship between calls, places and the underlying futures contract.
This principle requires that the places and calls are the same strike, equal expiration and have the equal underlying futures contract.
<h3>What is meant by put and call?</h3>
A "put" or put option is a proper to promote an asset at a predetermined price. A "call" or name option is a right to purchase an asset at a predetermined price. If merchants are buying extra puts than calls, it indicators a upward jostle in bearish sentiment.
<h3>Why it is known as put-call in options?</h3>
If you buy an options contract, it can provide you the right however not the responsibility to buy or promote an underlying asset at a set price on or before a certain date. A call option offers the holder the right to buy a stock and a put choice offers the holder the right to sell a stock.
Learn more about Put-call parity here:
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