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Why to options market-makers, they don't differentiate the calls and puts i.e. long call is long put? What is the relationship called? What should be
Why "to options market-makers, they don't differentiate the calls and puts i.e. long call is long put?" What is the relationship called?
What should be the price differential between a call and put of the same strike?
- Graphically show examples how a market maker can use this relationship to make arbitrage profits
- (provide 3 examples, 1 each for strikes at the money, strikes below the underlying price and strikes above the underlying price)
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