# How to explain the difference between call and put price

How do I explain the difference between call and put price at strike price 125? I assume the call and put price will be very close, right? Thanks

• There's no way to tell with just that information. What's the price of the underlying and what's the expiration? Commented Sep 17, 2020 at 19:43
• This is APPL stock and apple stock price right now is 109.30 USD. The expiration date is April 16th 2021 Commented Sep 17, 2020 at 19:47
• I feel I kind of understand now. But if someone can explain it, it will be better. Thanks Commented Sep 17, 2020 at 20:05
• The stock price is now 109.30 USD, so the 125 USD put option has 15.70 USD (`125 - 109.30 = 15.70`) of intrinsic value, while the 125 USD call option has 0 USD of intrinsic value.
– Flux
Commented Sep 17, 2020 at 23:41

## 1 Answer

Why would you assume that the "call and put price will be very close?" With the underlying stock being at \$109.30, the \$125 put is \$15.70 in-the-money and should be 15 some odd dollars higher in price than the \$125 call.

The midpoints of each option are pretty close to what they should be so these options are fairly valued.

• Now I understand. This is my mistake. Thanks Commented Sep 17, 2020 at 20:23
• I've edited under the assumption that \$109 is the underlying. Commented Sep 17, 2020 at 23:17
• Yep, that's descriptively clearer for those not following all of the comments. Commented Sep 17, 2020 at 23:33