1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex trading question

Discussion in 'BlackHat Lounge' started by IotaInsanity, Aug 2, 2017.

  1. IotaInsanity

    IotaInsanity Junior Member

    Joined:
    Oct 24, 2013
    Messages:
    127
    Likes Received:
    15
    Serious question I don't undrstand here.

    I'm having trouble figuring this out.

    A stock has a call option with a strike price of $100 and a premium price of $1.

    The same stock has a put option for a $100 strike price and a premium of $2.

    Is it not possible for me to write a $100 put for $200 premium, buy a call for $100, and have a guaranteed profit of $100? Am I missing something?