Put/Call Premium Difference

Quanto · Mar 10, 2024

Robert Morse said:
Did you include the cost to carry the Conversation until expiration?
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Is this really Conversation or rather Conversion?

newwurldmn · Mar 10, 2024

arman555 said:
correct the "cost of carry" is built into the price of futures. But lets say that noone including me cant hold a position open for long. We can still do futures options and underlying future for far term and hold it for free (since future does not have any of those cost to carry.
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No you can’t.

if a structure payout is different from the risk free rate with certainty it becomes arbitrage

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Put/Call Premium Difference

Quanto

newwurldmn