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Background Note
| HBS Case Collection
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1995
(Revised from original version)
Options and Put-Call Parity
by
Andre F. Perold and Wai Lee
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Abstract
Illustrates the payoff structure of various positions involving put and call options and the use of put-call parity in understanding the relationships among various positions. Examines the cases of insured equity, interest rate caps and floors, callable and extendable debt, and corporate balance sheets.
Keywords: Stock Options;
Citation:
Perold, Andre F., and Wai Lee. "Options and Put-Call Parity." Harvard Business School Background Note 295-129, August 1995. (Revised from original March 1995 version.)