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Basic Question 1 of 5

The equation for put-call-forward parity is ______.

A. p0 = c0 + [X - F(0, T)]/(1 + r)T
B. c0 = p0 + [X - F(0, T)]/(1 + r)T
C. p0 = c0 + [F(0, T) - X]/(1 + r)T
D. c0 = p0 - [F(0, T) - X]/(1 + r)T

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Learning Outcome Statements

explain put-call forward parity for European options

CFA® 2024 Level I Curriculum, Volume 5, Module 9.