Call vs Put when the strike prices are equal and equal to the current price ( assume same expiration)?

CFA Level I Quant
#1

Morning,

trying to work through put call parity, my issue is;

is the price Call equal to the Put when the strike prices are equal and equal to the current price ( assume same expiration)?

thanks

#2

And risk free rate = 0

1 Like
#3

In general, no.

As fino_abama says, when the risk free rate is zero, then yes. Otherwise (assuming that they’re fairly priced), no.

To see when their prices would be equal, look at put-call parity.

#4

thank you

#5

My pleasure.