Use put call parity relationship to find an arbitrage opportunity.

Use put call parity relationship to find an arbitrage opportunity.
P+S = C +PV(X)
Or P+S = C +PV(X) +D
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 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.

Don't use plagiarized sources. Get Your Custom Essay on
Use put call parity relationship to find an arbitrage opportunity.
Get an essay WRITTEN FOR YOU FOR YOU, Plagiarism free, and by an EXPERT!
Order Essay
Emergency Homework
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.