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Put/Call Parity, Synthetics, and the Effect of Interest Rates on Options Prices

Put/Call Parity, Synthetics, and the Effect of Interest Rates on Options Prices

Aired On

Apr / 14 / 2022
2:00 pm - EDT
Mathew Cashman
OCC

Start the 2nd Quarter of 2022 by learning how moving Interest Rates can affect Option prices and all about Put/Call Parity – as well as synthetics in the Option market. On April 14th at 2pm EDT, join the OCC for a live webinar led by Mat Cashman, a former Options market maker and current OIC instructor, as he presents “Put/Call Parity, Synthetics, and the Effect of Interest Rates on Options Prices”. During this discussion, we will cover:

  • Cost of Carry and Interest Rates
  • The Definition of Parity
  • Arbitrage
  • Parity in Theory – and in Practice
  • Synthetic Stock, Synthetic Calls, and Synthetic Puts
Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from OCC and is being posted with its permission. The views expressed in this material are solely those of the author and/or OCC and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD) or visit ibkr.com/occ

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