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A stock is at $\$100$ with no dividends. The one-year $\$100$ call is $\$10$ and the put $\$4$ ; the continuously compounded rate is $5\%$ . What riskless profit per share, in today’s money, does the right conversion or reversal capture? Give two decimals.

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Put–call parity

Reported in interviews at

Optiver, SIG (Susquehanna), Citadel Securities

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A stock is at $100 with no dividends. · QuantMax

A stock is at $100\$100$100 with no dividends. The one-year $100\$100$100 call is $10\$10$10 and the put $4\$4$4; the continuously compounded rate is 5%5\%5%. What riskless profit per share, in today’s money, does the right conversion or reversal capture? Give two decimals.

More options: fundamentals and arbitrage questions

A stock is at $\$100$ with no dividends. The one-year $\$100$ call is $\$10$ and the put $\$4$ ; the continuously compounded rate is $5\%$ . What riskless profit per share, in today’s money, does the right conversion or reversal capture? Give two decimals.