Put-Call Parity and Approaches to Usury in Medieval Contracting
Adam D. Wilson|Geetae Kim
Financial derivatives, including options, are usually presented as a “new” development in finance. Certainly, such things Credit Default Swaps appear new. On the other hand, some aspects of financial derivatives very old, perhaps much older than is generally recognized. In this paper, we document that on practical level, medieval clerics and merchants to have had at least an intuitive grasp “put-call parity,” nearly five centuries before it was described scholarly literature.
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