Call-put parity looks as follows:
[value of call] + [PV of exercise price] = [value of put] + [share price]
*from Brealey, Myers, Allen "Principles of corporate finance"
Take an example:
share price = 50,
strike price = 60 (for both call and put)
value of call = 50 - 60 = -10
PV of exercise price = 60
value of put = 60 - 50 = 10
Then the equation doesn't hold.
I assume that PV of exercise price could be defined wrong but probably something else. I would very appreciate if somebody says where I'm wrong and provide correct example.
Thanks in advance