PCP -> div, delta, fwd-contract ...

How do we internalize the PCP implications? They are hard to remember, easy to get wrong. We need to know the limitations/assumptions of each "rule of thumb". Some rules are more fundamental than other rules.

PCP is more fundamental than BS.

PCP is more fundamental than GBM.

PCP equation applies to both 1) terminal values and 2) pre-maturity values. In fact, given 2 replicating portfolios, their values must match at all times. What if one of the securities involved is non-tradable, like a dividend-paying stock? See posts on PCP+dividend.

PCP applies only to European options, not American or binary options.