Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts. Learn how it uses put-call parity to uncover profit opportunities.

We have spent a lot of time talking about ticks, spreads and trading costs in the equities markets. Today, we take a look at options trading. As we know, options markets are very different to stocks – ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...