标题: Mnemonic for Put Call Parity? [打印本页] 作者: spartan1 时间: 2011-7-11 15:14 标题: Mnemonic for Put Call Parity?
What mnemonic do you use to remember the put-call parity formula? Go!作者: thisisbrianly 时间: 2011-7-11 15:14
Re: mnemonics and tricks
Posted by: peterkeilman (IP Logged) [hide posts from this user]
Date: June 6, 2008 12:40PM
For the put call parity:
c+X = p + S
This is crude, but sound out how men urinate.
"c@x p!s"
I just remember that X is always X/(1+r)t作者: dmar 时间: 2011-7-11 15:14
Solid - that works.
Thanks!作者: Ionutzakis 时间: 2011-7-11 15:14
uh. you could do C K = P S. Just have to remember Calvin Klein. And PS. Like, PS I love you. Which means something like postscript, which doesn't mean anything to me.
I don't use X. I use K, for striKe price. You could use X, but then you couldn't use Calvin Klein. Think it over.
Since strike price is always associated with the end time (because you exercise relative to StriKe at the termation of the option), it's easy to remember that it's got the risk free rate component associated with it (needs to be discounted back to the present time where C, P, and S dwell).
