Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Put call parity arbitrage opportunity example

26/04/2021 Client: muhammad11 Deadline: 2 Day

Use put call parity relationship to find an arbitrage opportunity. P+S = C +PV(X) Or P+S = C +PV(X) +D We learned in the class that when put call parity relationship is violated, an arbitrage opportunity will arise. You will use this case to illustrate if you can find an arbitrage opportunity in the real world. To test the model, you will use the real data from CBOE.com options quote page to analyze the arbitrage trading. Assume you have $1,000,000 trading capital to conduct the arbitrage. You may define the parameters of the put call parity or use the following assumption for the parameters: Interest rate is 5% Transaction costs for a stock trade (selling or buying) is $10 per order Transaction costs for an options trade (selling or buying) is $25 per order Transaction costs for a bond trade (selling or buying) is $25 per order 365 calendar days a year and 252 business days a year Last trade price may be used for a stock, call, or put. Your case report should include the following format Introduction of the case study, explanation of any related theory, the data sources (include a snapshot of the screen from CBOE or Yahoo finance), analytical results, and conclusion. Give a detailed description of one of your trades and the other four briefly. Calculate the arbitrage profit based on the transaction of one options contract. Finally, Include everything, such as Excel calculation, in a word document. Case One Review Example The Put-Call Parity c + Ke -rT = p + S0 Arbitrage Profit: Sure profit with no risk Real world example: Use put call parity relationship to find an arbitrage opportunity. P+S = C +PV(X) We learned in the class that when put call parity relationship is violated, an arbitrage opportunity will arise. You will use this case to illustrate if you can find an arbitrage opportunity in a real world. To test the model, you will make 5 trades using 5 different sets of data. You may define the parameters of the put call parity or use the following assumption for the parameters: Interest rate is 5% Transaction costs for a stock trade (selling or buying) is $10 per order Transaction costs for an options trade (selling or buying) is $25 per order Transaction costs for a bond trade (selling or buying) is $25 per order 365 days a year Last trade price may be used for a stock, call, or put. Your case report should include the following format Introduction of the case study, explanation of any related theory, the data sources, a screenshot of the option data source, analytical results, and conclusion. Give a detailed description of one of your trades. Assume you have $250,000 trading capital to conduct the arbitrage. Finally, Include everything, such as Excel calculation, in a word document. Step 1: Get options data Data source: CBOE.com The company name: BA c=4.30 K=352.50 p=4.90 S0=353.81 r=5% t=3 days Step 2:

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Engineering Mentor
Writing Factory
Finance Professor
Smart Tutor
Phd Writer
High Quality Assignments
Writer Writer Name Offer Chat
Engineering Mentor

ONLINE

Engineering Mentor

I have read and understood all your initial requirements, and I am very professional in this task.

$39 Chat With Writer
Writing Factory

ONLINE

Writing Factory

I have read and understood all your initial requirements, and I am very professional in this task.

$20 Chat With Writer
Finance Professor

ONLINE

Finance Professor

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$27 Chat With Writer
Smart Tutor

ONLINE

Smart Tutor

I have read your project details. I can do this within your deadline.

$34 Chat With Writer
Phd Writer

ONLINE

Phd Writer

I am known as Unrivaled Quality, Written to Standard, providing Plagiarism-free woork, and Always on Time

$46 Chat With Writer
High Quality Assignments

ONLINE

High Quality Assignments

Give me a chance, i will do this with my best efforts

$47 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Usda forest service jobs oregon - Separation of benzoic acid and naphthalene lab report - Girl with a pearl earring cillian murphy - Samsung market segmentation targeting and positioning 3 3 40 www.homeworkmarket.com/sites/default/files/qx/15/10/18/06/week4_coursecontent .pdf Dec 20 12 point essay - What is the competitive advantage of smoothie king - Outside end style excel - Density of liquids virtual lab answers - Performance management system of starbucks - Apollo manual call point wiring diagram - Crime scenario - Assume that a bond will make payments every six months as shown on the following timeline - University of latvia accommodation - Hilhaven lodge the photo booth pictures - Exploring pascal triangle history - Data analysis plus - Operation support system example - Artifacts found with otzi - Different counseling theories - Answer 3 questions - Wk 2, HCS 430: DR 2 - Argumentative Essay - Lista unitati vouchere de vacanta 2018 pdf - Reliability and integrity in database security - Week 10 - Short Essays - Assignment 3- extra mile - Astro 7n - Free tambola tickets printable - Summary and Analysis essay (4 paragraphs) due at 11 PM - Moral relativism strengths and weaknesses - The abelam of papua new guinea hold festivals in which: - How to calculate case mix index for hospitals - Schaffer method of writing - In the following, what are the degrees of freedom: t(29) = 2.001, p < .05? - Dilution ventilation system - John selldorff net worth - Trevor noah plays who d you rather - Discussion - Op amp positive and negative feedback - Hl mencken the average man - Data table for cleaning coins - 224 bus timetable adelaide - Red bull energy drink target market - Reflection coefficient in db - Experiment 25 calorimetry lab report - Deliverable 6 - Analysis with Correlation and Regression - Economies of scale in managerial economics - Power/Leadership - OB - Mallard brand quick cooking rolled oats - Gcse maths trigonometry revision - Comprehensive problem 2 tj's specialty shop answers - Counseling Immigrants - 2 pages data governance and healthcare system - The case for short words richard lederer - Sh cascom com au - Appearance vs reality quotes in macbeth - There is growing concern about poverty and income inequality. These two concepts, however, are not the same. Income inequality - Animal Rights - Miniature ponies for sale nsw - Is bri polar covalent - Classroom of the Future - Word chapter 1 grader project - Defendants rights paper - White 5 red 8 and blue 1 - Why did the teacher open a window company - Driving force car club - Security architecture 5 - Anyone know how to use quickbooks online - Reruns for wee ones muscle shoals al - Research paper - Project Plan Overview - Mod 2 NI - Monash university library database - "Statute of Limitations" Please respond to the following: - Learning theories an educational perspective 6th edition pdf - Theories of Development Case Study X2 - Respond to all 4 discussion boards - Introduction to political science Assignment - Performance - Human resource management 11th edition mcgraw hill pdf - Tandberg 6000 mxp manual - Discussion - Momentum and impulse worksheet - Midterm Paper - Equality and more - Cor advantage anecdotes booklet - P&g one page memo example - Powerpoint on social media in the workplace - Labs - Let's go muttsu go - Amazon positioning statement - Outline the qualities you would like in a mentor. - Brd document for banking - Smart helmet using raspberry pi - Corey 8 step ethical decision making model - Work breakdown structure of restaurant - Planet taco chapter summaries - British wheel of yoga courses - Eric dunn hooray ranch net worth - Pipe thread engagement rule of thumb - Form 681 australia 2021