All Questions
Tagged with option-strategies put-call-parity
7
questions
-1
votes
1
answer
209
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Why does bull call spread shows higher payoff than bull put spread?
I am trying to compare bull call spread and bull put spread for equity index option. For the options where the put call parity holds, I am getting a different payoff for bull call spread and bull put ...
- 65
1
vote
3
answers
98
views
Equivalent combination of puts
Suppose that a certain stock is currently worth $S_0=\$61$. Consider an investor that buys
one call with a strike price equal to $K_1=\$55$, that costs $c_1=\$10$, buys another call with strike
price ...
2
votes
1
answer
688
views
Call Option Overvalued and put-call parity [closed]
I have a question regarding if a Call option is overvalued compared to the call price and how you can benefit from the Arbitrage opportunity.
My thoughts are as follows:
Step 1: Short the call ...
- 21
1
vote
1
answer
216
views
Is there an advantage trading options based on deep in the money Open Interest Volume ratio
Problem:
Deep in the money options contracts will be assigned at expiration date.
Higher Volume ratio of deep in the money contracts at expiration calls or puts leads to day after expiration date we ...
4
votes
1
answer
2k
views
Build a Synthetic Loan for Personal Finance
Suppose I am short of cash and want a loan for some mundane objective like travelling or buying a car. The interest rate for personal loan with my bank is too high.
Is there any way in finance that ...
- 41
0
votes
1
answer
102
views
Is it possible to calculate the call-put parity for an option's portfolio?
Let's say I have designed an option's portfolio. The portfolio includes long as well as short positions in European-style put and call contracts based on the same underlying asset with different ...
- 253
1
vote
1
answer
761
views
Risk-free investment strategy for european call and put option
I have some trouble solving the following question:
We have an european call and put option (with the same maturity date $T$ en strike $E=10$). The stock price now is $S=11$ and we use a continuous ...
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