What do you mean by interest and dividends are “hand waved away”? They are priced into the combo via the R/C so I am a little confused what the point of that sentence was?
Absolutely dividends and interest are priced in the combo, I just didn’t want to make that a focus. Just the idea that long call/short put ATM are a stock synthetic.
What do you mean by interest and dividends are “hand waved away”? They are priced into the combo via the R/C so I am a little confused what the point of that sentence was?
Absolutely dividends and interest are priced in the combo, I just didn’t want to make that a focus. Just the idea that long call/short put ATM are a stock synthetic.