Editing Put–call parity (section)

==History==
Forms of put-call parity appeared in practice as early as medieval ages, and was formally described by a number of authors in the early 20th century.

Michael Knoll, in ''The Ancient Roots of Modern Financial Innovation: The Early History of Regulatory Arbitrage'', describes the important role that put-call parity played in developing the [[equity of redemption]], the defining characteristic of a modern mortgage, in medieval England.

In the 19th century, financier [[Russell Sage]] used put-call parity to create synthetic loans, which had higher interest rates than the usury laws of the time would have normally allowed.{{Citation needed|date=June 2011}}

Nelson, an option arbitrage trader in New York, published a book: "The A.B.C. of Options and Arbitrage" in 1904 that describes the put-call parity in detail. His book was re-discovered by Espen Gaarder Haug in the early 2000s and many references from Nelson's book are given in Haug's book "Derivatives Models on Models".

Henry Deutsch describes the put-call parity  in 1910 in his book "Arbitrage in Bullion, Coins, Bills, Stocks, Shares and Options, 2nd Edition". London: Engham Wilson but in less detail than Nelson (1904).

Mathematics professor [[Vinzenz Bronzin]] also derives the put-call parity in 1908 and uses it as part of his arbitrage argument to develop a series of mathematical option models under a series of different distributions. The work of professor  Bronzin was just recently rediscovered by professor Wolfgang Hafner and professor Heinz Zimmermann. The original work of Bronzin is a book written in German and is now translated and published in English in an edited work by Hafner and Zimmermann ("Vinzenz Bronzin's option pricing models", [[Springer Verlag]]).

Its first description in the modern academic literature appears to be by [[Hans Stoll|Hans R. Stoll]] in the ''[[Journal of Finance]]''. <ref>{{cite journal|title=The Relationship Between Put and Call Option Prices|last=Stoll|first=Hans R.|journal=Journal of Finance|volume=24|issue=5|pages=801–824|date=December 1969|jstor=2325677|doi=10.2307/2325677}}</ref><ref>Cited for instance in {{cite journal|last1=Derman|first1= Emanuel|first2=Nassim Nicholas |last2=Taleb|title=The illusions of dynamic replication|journal=Quantitative Finance |volume=5 |issue= 4|year=2005|pages=323–326|doi=10.1080/14697680500305105|s2cid= 154820481}}</ref>