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difference between call and put price at strike price 125

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

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  • There's no way to tell with just that information. What's the price of the underlying and what's the expiration? Sep 17 '20 at 19:43
  • This is APPL stock and apple stock price right now is 109.30 USD. The expiration date is April 16th 2021 Sep 17 '20 at 19:47
  • I feel I kind of understand now. But if someone can explain it, it will be better. Thanks Sep 17 '20 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
    Sep 17 '20 at 23:41
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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.

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

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