Put-call parity, the triple contract, and approaches to usury in medieval contracting
Adam D. Wilson|Geetae Kim
In this article we use put-call parity to show that ambiguity about ownership played a role in medieval businessmen's efforts circumvent the Catholic Church's usury restrictions. That created fertile ground for financial innovation, triple contract, allowed some merchants accomplish kind of regulatory arbitrage. We also clerics and appear have had at least an intuitive grasp parity, insight shaped approach business contracts, usury, nearly five centuries before was described scholarly literature.
Financial History Review