Forward hedge financing

Discussion in 'Trading' started by fuqs, Jun 4, 2018.

  1. fuqs

    fuqs

    How reasonable it is to assume that the forwards (implied through call-put parity from European options) on easy-to-borrow European stocks will "grow" at Euribor/Eonia rate? In other words, is it reasonable to assume that we can finance the stock hedge at Euribor/Eonia (given we leave the stock as collateral).
     
  2. cvds16

    cvds16

    do you have any idea where Euribor/Eonia stands ... the answer to that question should make your question moot ...
     
  3. cvds16

    cvds16

    especially if you have to pay the spread in those options