IotaInsanity
Junior Member
- Oct 24, 2013
- 129
- 16
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?
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?