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1678 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 1 term

Put-call parity

Derivatives
Also called: Conversion, Reversal

The no-arbitrage link between a call, a put, the share and the strike: C + PV(K) = P + S.

In plain terms

If one side gets cheaper, traders buy it and sell the other until the gap closes. Dividends and costs explain most apparent breaks.

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Indian stock market glossary · Market Vidyalaya