Put-call parity arbitrage I | Finance & Capital Markets | Khan Academy
A1 A2 B1 B2 C1 C2
parity
US / 'pærətɪ /
•UK / ˈpærɪti /
- noun
- State of being equal in pay, rights, or power
matter
US / 'mætə(r) /
•UK / ˈmætɚ /
- noun
- Material all things are made of that fills space
- Problem or reason for concern
- verb
- To be of great importance; to count
always
US / 'ɔ:lweɪz /
•UK / ˈɔlwez,-wɪz,-wiz /
- adverb
- For a very long time
- At all times; in every situation
- For ever
strike
US / straɪk /
•UK / straɪk /
- noun
- A punch or hit
- Fact of not hitting the ball when playing baseball
- Refusal to work to get more pay, protest something
- verb
- To hit something
- To suddenly become (e.g. rich)
- To have an idea occur to you
here
US / hɪə(r) /
•UK / hɪr /
- adverb
- In this place; at this location, position or time
write
US / raɪt /
•UK / raɪt /
- verb
- To compose letters and words on paper or a screen
- To invent or create a computer program
- To create a song or piece of music
sell
US / sel /
•UK / sɛl /
- verb
- To exchange something for money
- To persuade people to do, like or agree
bond
US / bɒnd /
•UK / bɑnd /
- noun
- Rope, chain or other thing used to tie someone up
- Closeness that is shared between people or groups
- Loan that a government must buy back by a set date
- Written agreement to pay back borrowed money
- Joint or connection, often using glue
- verb
- To develop a close relationship with
- To become joined or connected, e.g. using glue
someone
US / ˈsʌmwʌn /
•UK / ˈsʌmˌwʌn, -wən /
- pronoun
- Person who is not known or named
expiration
US / ˌekspəˈreɪʃn /
•UK / ˌɛkspəˈreʃən /
- noun
- Coming to an end of a period, validity
side
US / saɪd /
•UK / saɪd /
- adjecitve
- In addition to the central or most important thing
- Next to, or very close to, the right or left of
- noun
- Position or opinion that is opposite to another
- Right or left part of a person's body
- Feature of someone's personality
- Straight edge of an object
- One of two or more groups fighting each other
- verb
- To decide to agree with one point, not the other
reason
US / 'ri:zn /
•UK / ˈrizən /
- noun
- Ability to think about facts and form a judgment
- Explanation for why something occurred or was done
- verb
- To think and make conclusions in a logical manner
plus
US / plʌs /
•UK / plʌs /
- noun
- A benefit or advantage
- preposition
- In addition; add
- In addition to; Indicates a number above
- Having a value greater than zero
should
US / ʃʊd /
•UK / ʃʊd /
- other
- Used to indicate what is proper or reasonable
interest
US / 'ɪntrəst /
•UK / ˈɪntrɪst, -tərɪst, -ˌtrɛst /
- noun
- Best or most advantageous thing for someone
- Activity or subject one enjoys doing or learning
- Fee for borrowing money
- verb
- To make someone want to know about something
- To persuade to do, become involved with something
see
US / si: /
•UK / si /
- verb
- To go on a date with someone
- To predict whether something is, or will be true
- To understand what someone says
- To use your eyes to look at something
- To visit a place often for sightseeing or pleasure
- To visit or meet with someone
- To find out by waiting or looking
- To watch (a game, movie or TV show)
with
US / wɪð /
•UK / wɪð, wɪθ /
- preposition
- As an employee of a certain company
- Against something or someone
- By using something as a means
- Due to; because of
- Including
- Possessing as a feature
- Related to
- (Of the manner/attitude by which you do something)
- Used to express that people or things are together
discrepancy
US / dɪs'krepənsɪ /
•UK / dɪˈskrɛpənsi /
- noun
- Difference between amounts that should be the same
have
US / həv /
•UK / hæv /
- verb
- To drink, smoke, eat or use something
- To experience the effects of something
- To organize an event, or join in an activity
- To own, possess, or hold something
- To cause to happen or produce a particular effect
could
US / kəd /
•UK / kʊd /
- other
- Past form of 'can' to mean have ability
- Used to ask for something politely, or to offer
next
US / nekst /
•UK / nɛkst /
- adverb
- The one that follows another in time or order
- At a time or place directly after the present one
- noun
- The one that follows after
- adjecitve
- Immediately after the previous one
- First occurrence after the present one
hand
US / hænd /
•UK / hænd /
- noun
- Cards given to a player in a card game
- Piece of a clock that points to the time
- Someone who performs physical tasks or work
- Body part at the end of a person's arm
- Help for someone performing a particular action
- Condition of having power or influence
- Member of the crew of a ship
- verb
- To give something to someone personally
xyz
US / /
•UK / /
- other
give
US / ɡɪv /
•UK / ɡɪv /
- noun
- Degree of flexibility in something, a material
- verb
- To hand over or present something to someone
- To cause someone to have or experience something
especially
US / ɪˈspeʃəli /
•UK / ɛˈspɛʃəli, ɪˈspɛʃ- /
- adverb
- More than usual; extremely
but
US / bət /
•UK / bʌt,bət /
- conjunction
- Used before you say something different, opposite
video
US / 'vɪdɪəʊ /
•UK / ˈvɪdiˌo /
- adjecitve
- Of a moving film, with sound
- noun
- Recording capturing action with sound
- verb
- To make a moving film of, with sound
want
US / wɔnt /
•UK / wɑnt, wɔnt /
- noun
- Something you desire or wish for
- State or condition of poverty
- verb
- To desire or wish for something; hope for a thing
upfront
US / ˌʌpˈfrʌnt /
•UK / ˈʌpˈfrʌnt /
- adverb
- Frank and honest
now
US / naʊ /
•UK / naʊ /
- adverb
- At the present time or moment
- Right away or in the next possible moment
- Used to refer to something that just happened
- Time between the present and a moment in the past
- conjunction
- Resulting from or because of something
equal
US / 'i:kwəl /
•UK / ˈikwəl /
- adjecitve
- Same in shape, size, or number
- verb
- To add up or be the same as
would
US / wʊd /
•UK / wʊd /
- other
- Used to indicate something imagined
- Used to ask or request something politely
- Verb used to indicate possibility, request etc.
- Used to indicate a preference
- Used to indicate a reaction
- Indicates something that occurred repeatedly
- Used to indicate willingness or ability to do
stock
US / stɒk /
•UK / stɑk /
- adjecitve
- (E.g. of a response) standard; usual; not original
- noun
- Animals such as cattle kept for breeding
- Tasty liquid added to stews, soups etc.
- Merchandise; goods kept by a business for sale
- Piece of a business, bought in the form of shares
- verb
- To keep some of, as items for sale
really
US / ˈri:əli /
•UK / ˈriəˌli, ˈrili /
- adverb
- Used to stress something that is said; definitely
- In a true or accurate manner
- Very
can
US / kæn /
•UK / kən,kæn /
- noun
- A metal container for storing food
- other
- Able to; have the skill to; have the time to
- verb
- To have permission to
- To be possible to do
- To preserve food by sealing it in a metal container
same
US / seɪm /
•UK / sem /
- adjecitve
- Being equal in quality and amount
- Identical; not different
- Not changing; constant
opportunity
US / ˌɒpə'tju:nətɪ /
•UK / ˌɑpɚˈtunɪti, -ˈtju- /
- noun
- Time, situation when a thing might be done; chance
pretty
US / 'prɪtɪ /
•UK / ˈprɪti /
- adjecitve
- Being attractive to the eye in a simple way
- adverb
- Very; to a great degree
arbitrage
US / ˈɑ:bɪtrɑ:ʒ /
•UK / ˈɑ:rbətrɑ:ʒ /
- noun
- Buying a commodity, gold etc. to sell it quickly
way
US / weɪ /
•UK / we /
- adverb
- Used to emphasize the amount of something
- noun
- Particular aspect of something being thought about
- One of various choices that could be made
- Particular existing condition or state
- (Often long) distance or length of time
- How something is done
- Route to go to a place
- Small street
- Usual behavior, emotions or habits of someone
else
US / els /
•UK / ɛls /
- adverb
- Otherwise; if you fail to
- (Of person place thing etc.) besides; in addition
work
US / wɜ:k /
•UK / wɚk /
- adjecitve
- Activity completed in order to make money
- noun
- The product of some artistic or literary endeavor
- Everything created by an author, artist, musician
- Activity you do in order to make money
- Place of employment
- Final product or result of a some labor or effort
- verb
- To bring into a specific state of success
- To be functioning properly, e.g. a car
- To do your job in your company or workplace
- To make an effort to do something
- To operate a machine or device
payoff
US / 'peɪɔ:f /
•UK / ˈpeˌɔf, -ˌɑf /
- noun
- Final payment of a debt
option
US / 'ɒpʃn /
•UK / ˈɑpʃən /
- noun
- A choice
- Right to buy or sell at a certain price and time
underlie
US / ˌʌndəˈlaɪ /
•UK / ˌʌndərˈlaɪ /
- verb
- To be the basis, foundation or cause of something
- To lie or exist beneath
pay
US / peɪ /
•UK / pe /
- noun
- Money you receive from your job, work, etc.
- verb
- To give money for goods or work done
- To give (attention, respect, etc.) to
- To be punished or suffer for something you did
- To make (a visit) to a person or place
look
US / lʊk /
•UK / lʊk /
- noun
- Person's beauty or physical attractiveness
- Particular style of dress, clothes, or appearance
- The way someone, something appears to be
- Act of searching for or examining something
- verb
- To appear to be; seem
cancel
US / 'kænsl /
•UK / ˈkænsəl /
- verb
- To end a legal, business, or other agreement
- To stop a planned event from happening
both
US / bəuθ /
•UK / boθ /
- determiner
- Used to refer to two things at the same time
- pronoun
- Used to refer to two things at the same time
they
US / ðeɪ /
•UK / ðe /
- pronoun
- Two or more people, animals, or things
risk
US / rɪsk /
•UK / rɪsk /
- noun
- Actions that cause potential problems
- verb
- To do something potentially dangerous or foolish
everything
US / 'evrɪθɪŋ /
•UK / ˈɛvriˌθɪŋ /
- pronoun
- All of the things mentioned
make
US / meɪk /
•UK / mek /
- noun
- Product made by a particular company; brand
- verb
- To arrange or prepare something e.g. dinner
- To get to (a place) on time
- To gain the status of (teacher, lawyer, etc.)
- To create something by putting things together
- To earn a certain amount of money at a job
- To cause or force a person to do something
- To cause something to happen or be formed
price
US / praɪs /
•UK / praɪs /
- noun
- Person's name
- Cost of something in money
- verb
- To determine or set the cost of something
you
US / jʊ /
•UK / ju /
- pronoun
- Person someone is speaking or writing to
- Person or people in general
cheap
US / tʃi:p /
•UK / tʃip /
- adjecitve
- Not costing a lot of money
- Having a low quality or value
- Not liking to spend money; mean; stingy
this
US / ðɪs /
•UK / ðɪs /
- adjecitve
- Used to indicate something already been discussed
- Used to indicate something happening around now
- adverb
- An indication by a physical motion or gesture
- A specific amount of
- determiner
- Person, thing, or idea near you
- pronoun
- Person, thing that has already been discussed
free
US / fri: /
•UK / fri /
- adjecitve
- Living, happening without being controlled
- Costing no money
- Not working; not busy
- verb
- To release (e.g. bird) from a cage or prison
able
US / 'eɪbl /
•UK / ˈebəl /
- adjecitve
- Skilled; good at something
- Having the ability to do something
than
US / ðən /
•UK / ðən /
- conjunction
- Used to compare two things that are not equal
forward
US / 'fɔ:wəd /
•UK / ˈfɔrwəd /
- adjecitve
- Toward what is ahead; in front
- Acting in a socially aggressive manner; pushy
- adverb
- Toward the front in place; in front
- Toward a future time; to a more advanced state
- verb
- To send something to another address or person
the
US / ðə /
•UK / ðə /
- article
- Used to refer to something already mentioned
- Used to show there is only one of something
- determiner
- Used to describe all of a family
let
US / let /
•UK / lɛt /
- verb
- To allow someone to do something
- Introducing a suggestion to do something together
- To rent a house, etc. to others
less
US / les /
•UK / lɛs /
- adjecitve
- Smaller in amount or degree
- adverb
- To a smaller degree
- noun
- A smaller amount
- preposition
- With the subtraction of
two
US / tu: /
•UK / tu /
- number
- 2
put
US / pʊt /
•UK / pʊt /
- phrasal verb
- to make a light stop shining by pressing or moving a switch
- verb
- To move or place a thing in a particular position
- To rate something in importance or value
- To write or say something in a certain manner
rearrange
US / ˌri:ə'reɪndʒ /
•UK / ˌriəˈrendʒ /
- verb
- To rethink a plan, event for a time and place
- To put into a new order for something to happen
leave
US / li:v /
•UK / liv /
- noun
- Permission to do something
- Vacation time; time off work
- verb
- To go away from; depart
- To gift property to someone after you die
- To allow something to continue happening
- To let something remain unused or available
- To let something or someone remain somewhere
call
US / kɔ:l /
•UK / kɔl /
- noun
- A order or request for action
- The sound an animal makes, often when in danger
- A correct prediction, e.g. a decision in a game
- A short visit to a place or person
- A decision by a referee or umpire in a game
- verb
- To make a request or order for action
- (Animal) to make sounds to warn of danger
- To announce the date of an election
- To make a judgment about something
- To give someone or something a name
- To guess in advance the result or outcome
- To visit a place or person for a short time
- To phone someone
- To speak, announce or shout in a loud voice
money
US / 'mʌnɪ /
•UK / ˈmʌni /
- noun
- Coins or notes we use to pay for things
and
US / ənd /
•UK / ənd, ən,ænd /
- conjunction
- Used to refer to two or more things
- Plus; in addition; on top of that
- Used to introduce an action that follows another
another
US / əˈnʌðə(r) /
•UK / əˈnʌðɚ /
- adjecitve
- One more, but not this
- determiner
- One more added
- pronoun
- One more (thing)
keep
US / ki:p /
•UK / kip /
- noun
- Large, strong tower in the middle of a castle
- Money spent on you so you can live in a place
- verb
- To continue doing something; not to stop
- To stop balls going in a goal in sports
- To not give back or return something
- (Of food) to not spoil or not rot
- To take possession of something to own, e.g. a pet
- To have and continue to hold something
- To do something that you have promised or agreed
- To stay in a certain place or condition
- To maintain the rules
finally
US / ˈfaɪnəli /
•UK / ˈfaɪnəli /
- adverb
- used especially at the beginning of a sentence to introduce the last point or idea
- After a long time or some difficulty
think
US / θɪŋk /
•UK / θɪŋk /
- verb
- To have an idea about something without certainty
- To have an idea, opinion or belief about something
literally
US / ˈlɪtərəli /
•UK / ˈlɪtərəli /
- adverb
- So as to express the exact meaning of something
- Used to say something is true, even if unlikely
any
US / 'enɪ /
•UK / ˈɛni /
- adjecitve
- One, or some, no matter which
- pronoun
- One (thing) of many; some
over
US / 'əʊvə(r) /
•UK / ˈovɚ /
- adverb
- Finished; no longer happening
- Towards the ground/away from a standing position
- noun
- A set of six consecutive balls bowled in cricket
- other
- Finished
- preposition
- Showing the relation when a thing is above another
- On or covering something
- Above or across something
- More than you need
- From one side to the other
- In the direction of; toward
out
US / aʊt /
•UK / aʊt /
- adverb
- No longer stylish (e.g. fashion)
- Away from home, business, or the usual place
- In a direction/movement away from inside or center
- noun
- Act when a batter cannot continue playing
- verb
- To tell people a secret
from
US / frəm /
•UK / frʌm, frɑm,frəm /
- preposition
- Starting at a particular place, time or level
happen
US / 'hæpən /
•UK / ˈhæpən /
- verb
- To take place or occur
number
US / ˈnʌmbə(r) /
•UK / ˈnʌmbɚ /
- noun
- Symbols such as 1, 2, 56, 793
- Particular song or dance performed during a show
- Total quantity or amount of things
- verb
- To put numbers on things
- To assign a sequence within a group, series, set
- To claim to be part of a larger group, series, set
bill
US / bɪl /
•UK / bɪl /
- noun
- Plan for a new law being discussed by a government
- Sign or poster advertising something
- Paper money; a bank note
- Piece of paper showing what you have to pay
- Hard, often pointed part of a bird's mouth
- Person's name
- verb
- To request payment by handing over an invoice
straightforward
US / ˌstreɪtˈfɔ:wəd /
•UK / stretˈfɔrwəd /
- adjecitve
- Easy to do or understand; not complicated
profit
US / 'prɒfɪt /
•UK / 'prɑ:fɪt /
- noun
- Benefit from doing something
- Money earned from sales, after costs are deducted
- verb
- To be a benefit to someone
- To earn money from something
borrow
US / ˈbɒrəʊ /
•UK / ˈbɑ:roʊ /
- verb
- To take and later return something from another
- To carry one number to another column when adding
then
US / ðen /
•UK / ðɛn /
- adverb
- A time that is not now
- Following another thing in time or arrangement
- Following on reasonably from what was just stated
- At that time, not now
type
US / taɪp /
•UK / taɪp /
- noun
- Printed letters or blocks used for printing them
- Group of things or people sharing common features
- verb
- To identify something belonging to a group
- To write by touching keys on a keyboard
mean
US / mi:n /
•UK / min /
- adjecitve
- Being good at
- Nasty; unkind
- Not liking to spend money; cheap; stingy
- noun
- Average of a set of numbers
- verb
- To express a particular idea or thought
- To intend to do something in particular
- To have a particular meaning or value
value
US / 'vælju: /
•UK / ˈvælju /
- noun
- Importance you attach to something
- Some information expressed as a number
- Stated price of something; worth
- verb
- To place a high importance on something
- To say how much money something is worth
right
US / raɪt /
•UK / raɪt /
- adjecitve
- Correct or true
- The south side of you looking at the rising sun
- adverb
- Exactly in a place or time
- Being appropriate for a particular event
- In a straight or direct manner
- noun
- Something you are legally or morally allowed to do
- Ideal of what is just and good
- Political view based on conservatism
- verb
- To fix something previously wrong or unjust
- To make upright, as a boat that has turned over
essentially
US / ɪˈsenʃəli /
•UK / ɪˈsenʃəli /
- adverb
- Basically; (said when stating the basic facts)
get
US / ɡet /
•UK / ɡɛt /
- verb
- To become affected by illness or disease
- To begin to feel or understand an emotion or idea
- To send or bring someone or something home, etc.
- To go somewhere to obtain something
- To (cause to) do a particular thing
- To obtain, receive or be given something
- To currently have
- To prepare for use
- To understand something being said or read
what
US / wɒt /
•UK / hwɑt, hwʌt, wɔt, wʌt,hwət, wət /
- pronoun
- Thing or things that; the same kind as
- Used to emphasize something you are about to say
- adjecitve
- Used to refer to a particular amount, or number
- Used to place emphasis on a particular quality
- adverb
- To a certain degree
- determiner
- Question words used for asking for information
- exclamation
- Used to express excitement, shock, or surprise
- Used to ask people to repeat something they said
that
US / ðæt /
•UK / ðæt, ðət /
- adjecitve
- The person or thing being talked about
- Used to identify something both the speakers know
- adverb
- Used to reinforce adjectives and adverbs
- To such a degree
- conjunction
- Used to connect a noun clause
- Used to introduce an adverbial clause
- Used to introduce a noun clause
- determiner
- Used as a noun to refer to something
- pronoun
- Referring an object far away
- Used to refer to the relative pronoun ‘which’
even
US / 'i:vn /
•UK / ˈivən /
- adjecitve
- Being equal in influence, power, possibility etc.
- Being divided equally or fairly
- (Of teams/contest) with similar chances of success
- Smooth, level, or regular
- Can be divided by 2; ending in 2, 4, 6, 8, or 0
- At a regular, equally steady manner
- Remaining steady and unchanging
- adverb
- (When this is surprising) as well; too
- (Used to compare two things/stress the difference)
- verb
- To make something level; to flatten
- To make something equal
about
US / ə'baʊt /
•UK / əˈbaʊt /
- adverb
- To be ready to; going to
- Nearly; approximately; roughly
- Near; next to; close to
- In every direction; in the area of
- preposition
- Concerning or of (a topic)
though
US / ðəu /
•UK / ðo /
- adverb
- Although, despite the fact that
combination
US / ˌkɒmbɪ'neɪʃn /
•UK / ˌkɑmbəˈneʃən /
- noun
- Series of letters or numbers needed to open a lock
- Act or result of mixing things together
well
US / wel /
•UK / wɛl /
- adjecitve
- Being in a fortunate, good condition or state
- Healthy and in good condition
- adverb
- In an acceptable, proper, or successful manner
- In a complete, total, or full manner
- A great and considerable degree
- In a successful way, in a good or satisfactory way
- exclamation
- Used to begin or continue a particular statement
- Used to show you want to start saying something
- Used to express that you are waiting for a reply
- You say this to change the topic of a conversation
- Used to indicate you are making a final remark
- noun
- Long deep hole in the ground to get water
- verb
- To cause your eyes to fill with tears
since
US / sɪns /
•UK / sɪns /
- adverb
- At a point before the present time
- conjunction
- For this reason; because
- preposition
- From the time in the past that
exact
US / ɪɡ'zækt /
•UK / ɪɡˈzækt /
- adjecitve
- Completely correct; accurate; specific
- verb
- To get something, sometimes using force
treasury
US / ˈtreʒəri /
•UK / ˈtrɛʒəri /
- noun
- Government office concerned with finance
unrelated
US / ˌʌnrɪˈleɪtɪd /
•UK / ˌʌnrɪˈleɪtɪd /
- adjecitve
- Not related; not connected
- Not sharing a family relationship
just
US / dʒʌst /
•UK / dʒʌst /
- adjecitve
- Proper or appropriate; as is deserved
- Doing or being what is right or fair
- Legally correct; having enough evidence
- adverb
- Almost; nearly
- Exactly at the time of
- Exactly (the same as, like)
worth
US / wɜ:θ /
•UK / wɚθ /
- other
- the financial, practical or moral value of somebody/something
- having a particular value, especially in money
why
US / waɪ /
•UK / hwaɪ, waɪ /
- adverb
- Question word to ask for a reason
- exclamation
- (Used to express surprise or approval)
short
US / ʃɔ:t /
•UK / ʃɔrt /
- adverb
- Less than what is needed
- Suddenly stopping what you are saying or doing
- verb
- (Of electric circuit) to spark because faulty
- adjecitve
- Measuring a small distance
- Happening for a small amount of time
- Unfriendly or rude
spend
US / spend /
•UK / spɛnd /
- verb
- To use money to pay for something
- To use time in order to do something
- To use up something completely
for
US / fə(r) /
•UK / fɔr,fə /
- preposition
- Used to show the purpose, or need of something
circumstance
US / 'sɜ:kəmstəns /
•UK / ˈsɚkəmˌstæns /
- noun
- Condition or fact that affects a situation