Conversion arbitrage

A risk-free Transaction in which an investor buys a Put and writes a Call for shares of stock already held. The Put and Call should have identical Exercise prices and Expiration date.

Related Terms: 11 Action, Buy, Call, Exercise, Expiration date, Put, Risk, Ratio, Share, Transaction, Write

Other Related Pages: Category: Trading Starting With: C

Additional Related Terms: 10-K, 19c3 stock, Allowance for depreciation, Asset/equity ratio, Accrual of discount, American Stock Exchange, Amortization of premium, Asked price, Asking price, At par