Covered Call & Short Put

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jpbcologne

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Could somebody analytically show how the payoff of covered call equals the one of short put?
Many thanks in advance !
 
simple way i look at it: If you sell a put at $100 strike and it gets exercised than the buyer of the put now has the right to sell you the stock at $100. So you buy the Stock at $100 from the option holder plus you recieved the initial premium. The buyer of the put is only going to exercise if the stock drops below the strike price. Now look at a covered call scenario when the stock falls. You bought the stock at $100 and then you sold a call off the stock. Stock is falling so call will not be exercised so you will recieve the value of the underlying stock in both scenarios as well as recieving a premium. This is a broad example, there are some missing details to make the payoffs exactly the same but dont worry about that.
 
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