Put-call parity is a fundamental relationship in european options pricing that states that the price of a put option, the price of a call option, the underlying asset price, and the strike price are all related. The formula for put-call parity is:
C + K = P + F
C is the price of the call option
K is the strike price of the option
P is the price of the put option
F is the price of the underlying asset
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