Put-Call Parity Calculator

It is the no-arbitrage relationship stating that the difference in call and put prices equals the stock price minus the present value of the strike.

Not exactly. American options can be exercised early, introducing an inequality rather than a strict equality.

If the call is overpriced relative to the put, you would sell the call, buy the put, buy the stock, and borrow PV(K). Transaction costs must be considered.