I am referring to Exchange traded Options on FX
Namely EUR/ USD
If prices for CALL and PUT are different for same Strike price and same expiry is the following possible
the yield from CALL is more than Yield of PUT
A) DO a CC on
Long EUR/USD and
Sell -1 EUI Feb11 73.5 Call $0.71 ($71.00)
B) Protect the downside ( SPOT going downwards)
Buy 1 EUI Feb11 73.5 Put $0.60$60.00
Net yield = $11 per contract?
How is this possible?
Namely EUR/ USD
If prices for CALL and PUT are different for same Strike price and same expiry is the following possible
the yield from CALL is more than Yield of PUT
A) DO a CC on
Long EUR/USD and
Sell -1 EUI Feb11 73.5 Call $0.71 ($71.00)
B) Protect the downside ( SPOT going downwards)
Buy 1 EUI Feb11 73.5 Put $0.60$60.00
Net yield = $11 per contract?
How is this possible?