Arbitrage?
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Description
This is a simple application that detects pricing violations on options (American or European) and presents strategies to engage in arbitrage.
It is a handy tool for students taking a finance course on options since it demonstrates the basic principle of arbitrage.
The violations it detects include:
- Upper Bounds
- Lower Bounds
- Put-Call Parity
- Convexity Conditions
- and more..
************** DISCLAIMER! **************
- The application should be used for educational purposes ONLY!
- It is NOT 100% guaranteed that the application will detect all arbitrage opportunities.
******************************************
It is a handy tool for students taking a finance course on options since it demonstrates the basic principle of arbitrage.
The violations it detects include:
- Upper Bounds
- Lower Bounds
- Put-Call Parity
- Convexity Conditions
- and more..
************** DISCLAIMER! **************
- The application should be used for educational purposes ONLY!
- It is NOT 100% guaranteed that the application will detect all arbitrage opportunities.
******************************************
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