# rho in call put parity

## Summary

The relationship between the price of a European call option and European put option is known as put-call parity. 1 This equation states that a portfolio of a long call option and a short put option is equivalent to a single forward contract at the same strike price and expiry. 2 The value of long options (calls) increases with an increase in interest rate, while the value of short options (puts) decreases. 3 Therefore, long calls and short puts have a positive rho, while long puts and short calls have a negative rho. 3

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## Summaries from the best pages on the web

Summary . Interest rate increases usually increase the value of long options – calls – and decrease the value of short options – puts. Therefore, long calls and short puts have a positive rho; long puts and short calls have a negative rho.
Rho - Overview, Positive and Negative Rho, Option Types
corporatefinanceinstitute.com

Put-call parity states that the simultaneous purchase and sale of a European call and put option of the same class (same underlying asset, strike price, and expiration date) is identical…
Put-Call Parity: Definition, Formula, How it Works, and Examples
investopedia.com

Summary Put-call parity is an important concept in options pricing which shows how the prices of puts , calls , and the underlying asset must be consistent with one another. This equation establishes a relationship between the price of a call and put option which have the same underlying asset.
What is the Put-Call Parity? - Corporate Finance Institute
corporatefinanceinstitute.com

The put-Call Parity formula states that the return from holding a short put and a long call option for a stock should provide an equal return as provided by holding…
Put Call Parity Formula | Step by Step Calculation with Examples
wallstreetmojo.com

In financial mathematics, put – call parity defines a relationship between the price of a European call option and European put option, both with the identical strike price and expiry, namely that…
Put–call parity - Wikipedia
wikipedia.org

00:25 - Put - call Parity05:37 - Rho 的解釋06:36 - Greeks完結可能係 Youtube 第一段用廣東話講 Put - call parity 嘅片學識 Put - call parity , 進一步理解期權期權Greek - Rho ...