Arbitrage from Put Call Parity

How to lock in an arbitrage profit with Put-Call parity

[@saxet812004]

Thank you, this is one of the clearest, concise, and easy to understand videos!

[@finquestinstitute9996]

Thank you so much!

[@georgeabuid3285]

Is there a software tool or a cloud tool developed to spot Put-Call Parity opportunities when they appear, and immediately alert the user about the opportunity before it is gone?

[@finquestinstitute9996]

Hi George, I am not aware of a ready tool that may be available. But one may build an arbitrage trading algorithm for spotting put call parity opportunities. Ideally it would be good to have a fully automated trading algorithm for this due to the fact that such opportunities vanish quickly, so it's best to have a machine trade for us

[@georgeabuid3285]

@@finquestinstitute9996 thanks for the feedback. Yes, totally agree, ideally automatic searching for an opportunity and if possible to close the deal, although a higher risk for a configuratione error. I was not able to find neither a tool, nor a bot that deals with scanning for the opportunities, what is really surprising. Probaby not impossible to achieve for finance software programmers. I suppose institutions must have something like that. Please let me know if you find one.

[@finquestinstitute9996]

@@georgeabuid3285 sure. We will let you know if we come across any product that provides this feature. Thanks,

[@georgeabuid3285]

@@finquestinstitute9996 Hi again, Thanks Much indeed

[@thiagoCfr]

Hello. Excellent class. Have you found any ready-made algorithm for this purpose? If not, I can develop it if I have the information about the options in an API or MetaTrader platform. I developed something in "almost" real-time that is running on a website, and this function would be a happy addition.

[@nafimkhan5206]

How the Calculate the Stock price at Maturity

[@finquestinstitute9996]

Hello, we do not have to calculate the stock price at maturity. We enter the strategy today at current market prices. The idea is to lock-in an arbitrage profit today based on the mispricing of securities today. We do not need to worry about what the stock price may be at maturity.

[@nafimkhan5206]

@@finquestinstitute9996 oh okk thanks a lot I was having a bad with Confusing regarding this Issue…thanks a lot for helping me out