Put-call parity arbitrage I | Finance & Capital Markets | Khan Academy

Put-Call Parity Arbitrage I. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/put-call-parity-arbitrage-ii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/arbitrage-basics?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. could you please explain where did the bond come from , you said it is not related to the stock , how is this completely hedged ?
   in real life if i want to execute such an arbitrage , what bonds am i looking at ?
2. nothing new in the video :)
3. This is how Rob talks on the phone to people. I have no clue what he's saying. I hope the people he's talking to know. I always feel like I just landed on an alien planet when I listen to him talk about his work.
4. Wow you explained this concept better in 3 minutes than my Harvard PhD professor could in 2 days.  Thanks Sal!
5. how does the put & call option be valued at $12& $8? if current stock price is $31 and option strike is $35, shouldn't them be $4 and $0 ?
6. you are my God
7. This is good but as a retail trader can this technique even be implemented considering all of the commissions one has to pay?
8. Thank you! This really helped me in my assignment.
9. do you know any good textbok? seriously.
10. Well explain. For those people who feel confused by what this video saying, I want to say, you cannot just rely on these short video clips to have a full understanding on stock option concepts. These video clips should be viewed as the supplemental learning resource. If anyone wants to have a well understand in finance, then s/he must to take classes and read a lot of textbooks, rather than just watch some video clips on Youtube.
11. @MultiCheeseGrater I told agree with you. Some of his new videos on arbitrage, economics, and financials are really short. Those topics are difficult to understand so it needs more time and in depth explanations. These short videos only makes it more confusing.
12. honestly you explained the put call arbitrage videos really poorly i am confused. Also why did you shorten the length of them the longer ones are better cus you have more time to explain :(
13. @triforcelink college
14. i love these number games, how do people come up with this stuff??