Add training workflow, datasets, and runbook
This commit is contained in:
@@ -0,0 +1,15 @@
|
||||
The difference is due mainly to rounding and the early-exercise potential of
|
||||
the American put. In mathematical terms
|
||||
The synthetic long stock is approximately equal to the long stock position
|
||||
when considering the effect of interest. The two lines in Exhibit 6.7 —
|
||||
representing stock and synthetic stock—would converge with each passing
|
||||
day as the calculated interest decreases.
|
||||
This equation works as well for a synthetic short stock position; reversing
|
||||
the signs reveals the synthetic for short stock.
|
||||
Or, in this case,
|
||||
Shorting stock at $51.54 is about equal to selling the 50 call and buying
|
||||
the 50 put for a $2 credit based on the interest of 0.486 computed on the 50
|
||||
strike. Again, the $0.016 disparity between the calculated interest and the
|
||||
actual difference between the synthetic value and the stock price is a
|
||||
function of rounding and early exercise. More on this in the “Conversions
|
||||
and Reversals” section.
|
||||
Reference in New Issue
Block a user