📘 𝘋𝘦𝘳𝘪𝘷𝘢𝘵𝘪𝘷𝘦𝘴 𝘢𝘯𝘥 𝘍𝘪𝘹𝘦𝘥 𝘐𝘯𝘤𝘰𝘮𝘦 course notes for students enrolled in the 𝘘𝘶𝘢𝘯𝘵𝘪𝘵𝘢𝘵𝘪𝘷𝘦 𝘍𝘪𝘯𝘢𝘯𝘤𝘦 𝘵𝘳𝘢𝘤𝘬 within the 𝘗𝘳𝘰𝘨𝘳𝘢𝘮𝘮𝘦 𝘎𝘳𝘢𝘯𝘥𝘦 𝘌𝘤𝘰𝘭𝘦 - 𝘔𝘢𝘴𝘵𝘦𝘳 1 (𝘗𝘎𝘌 𝘔1) at SKEMA Business School. This week’s topic: 𝘗𝘶𝘵–𝘊𝘢𝘭𝘭 𝘗𝘢𝘳𝘪𝘵𝘺.
Highlights from the material:
📘 Protective puts as insurance
📊 Visualizing payoff structures using Python plots
📈 Replicating a protective put using a call and a bond
💡 Put-call parity and its arbitrage implications
These notes include both numerical and graphical illustrations to reinforce the intuition behind this cornerstone identity in option pricing.
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