About this question
Easy · options_pricing · Quant Researcher interview question · options, arbitrage, put-call-parity, pandas, numpy, finance, quantitative-finance
Put-Call Parity establishes a fundamental no-arbitrage relationship between European call and put options with identical strikes and maturities. In quantitative finance, deviations from this equality ($C - P = S - K e^{-rT}$) signal market inefficiencies that can be exploited for risk-free profit. Identifying these discrepancies is crucial for algorithmic trading and validating option pricing models. Task Implement a function solution(market_data) that calculates the potential arbitrage profit