Broken Put-Call Parity

Put-call parity with zero rates states $C-P=S-K$.

Plug in the given numbers on both sides and compare.

1. 1. State put-call parity

   With zero interest rates, put-call parity requires $C-P=S-K$.

   $$C-P=S-K$$

2. 2. Check the numbers

   Left side: $8-6=2$. Right side: $100-100=0$. Since $2\ne 0$, parity is violated.

3. 3. Conclude

   No, put-call parity does not hold given these prices.

Answer: No