Introduction:
Arbitrage, the strategy of exploiting price differences across markets or instruments, can present attractive opportunities for investors, especially when it involves strike prices of different financial instruments. In the options market, discrepancies between strike prices and underlying asset prices can lead to profitable arbitrage opportunities.
Decoding Strike Price Arbitrage:
The strike price – the predetermined price at which an underlying asset can be bought or sold using an option contract – plays a vital role in arbitrage strategies. Astute investors look for disparities between the strike price of option contracts and...
Introduction:
Arbitrage, the strategy of exploiting price differences across markets or instruments, can present attractive opportunities for investors, especially when it involves strike prices of...