A risk-free transaction in which an investor buys a put and writes a call for shares of stock already held. The put and call should have identical exercise prices and expiration dates.
Related information about conversion arbitrage:
- Conversion Arbitrage Definition | Investopedia
An options trading strategy employed to exploit the inefficiencies that exist in the pricing of options. Conversion arbitrage is a risk-neutral strategy, whereby the ...
- Conversion Arbitrage: Introduction | Investopedia
This stock/options combination helps traders take advantage of market mispricing . Find out how.
- Conversion Arbitrage: Other Risk Factors | Investopedia
Other risks that an investor must know before using conversion arbitrage as a trading strategy.
- Conversion / Reversal Arbitrage by OptionTradingpedia.com
There is a $1.00 difference in extrinsic value between the Synthetic Short Stock and the actual Short Stock, therefore, Conversion Arbitrage is possible.
- What is Conversion Arbitrage?
Brief and Straightforward Guide: What is Conversion Arbitrage?
- What is CONVERSION ARBITRAGE? - The Law Dictionary
Definition of CONVERSION ARBITRAGE: An ARBITRAGE strategy that takes advantage of mispricing of OPTIONS in relation to PUTCALL PARITY. The strategy ...
- What is conversion arbitrage? definition and meaning
Definition of conversion arbitrage: A risk-free transaction in which an investor buys a put and writes a call for shares of stock already held. The put and call ...
- Put-Call Parity; Conversion Arbitrage; Reverse Conversion Arbitrage
A concise, illustrated tutorial, with examples, on the put-call parity theorem, including the maintenance of put-call parity through conversion and reverse ...