Students develop an understanding of put-call parity in terms of the trader, which allows them to examine the practical aspects of how arbitration works in the options market. Installing the case, just before the introduction of stock options in 1977. After four years of the experiment call options, the U.S. Securities and Exchange Commission (SEC) is going to start trading options. Ed Barton, trader Smith Barney, is faced with a trading strategy based on the put-call parity.
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by Robert M. Conroy Source: Darden School of Business 3 pages. Publication Date: January 31, 1991. Prod. #: UV0074-PDF-ENG