Posted by **Samuel** on Friday, March 12, 2010 at 3:45am.

Describe a potential arbitrage strategy if a put price is the same as the negative of a forward if the strike are the same. You need to specify the number of units you would long/short for each instrument, initial cash flow, and final cash flow. An arbitrage oppotunity arises only when the both cash flows are non-negative, and one of them is positive in at least one possible scenario.

## Answer This Question

## Related Questions

- Finance - A trader buys a European call option and sells a European put option. ...
- financial management - The current price of a stock is $33, and the annual risk-...
- mangerial econ - The MorTex Company assembles garments entirely by hand even ...
- Managerial Economics - The MorTex Company assembles garments entirely by hand ...
- Futures &Options - 1. You are given the following two sets of prices of European...
- Finance - . You are given the following two sets of prices of European options ...
- economics - Consider the price strategy of Delta Airlines for its Detroit-to-...
- MathematicalModels - At time zero you enter a long position in a forward ...
- physics - A parallel plate capacitor having plates 6.0 cm apart is connected ...
- Pre Algebra - how do i do to get the answer for negative 12 + possitive 4+...

More Related Questions