The put option formula can be memorized by comparing it structurally with the call option formula. Starting from the call formula , you swap the positions of the two terms and negate the arguments inside the standard normal distribution function .
Conditions: You already know the Black-Scholes-Merton formula for the call option.; This is a mnemonic rule for memorization, not a rigorous mathematical proof.
The put option formula can be memorized by comparing it structurally with the call option formula. Starting from the call formula , you swap the positions of the two terms and negate the arguments inside the standard normal distribution function .
Conditions: You already know the Black-Scholes-Merton formula for the call option.; This is a mnemonic rule for memorization, not a rigorous mathematical proof.