Hi,
I found a stock currently trading at $96 and has call options as shown below:
If I buy a call option with a strike price of 35 dollars is there an arbitrage opportunity?
Call option premium: $53.30 per share * 100 shares = $5300
Exercise the option at $35 strike = $35 * 100 = $3500
Total cost $5300 + $3500 = $8800
Sell the stock at current price of $96
Revenge $96 * 100 = $9600
Profit $9600 - $8800 = $800
Is the above correct or am I missing something? All the calls in the above image appear to offer the same arbitrage opportunity.
Thanks
I found a stock currently trading at $96 and has call options as shown below:
If I buy a call option with a strike price of 35 dollars is there an arbitrage opportunity?
Call option premium: $53.30 per share * 100 shares = $5300
Exercise the option at $35 strike = $35 * 100 = $3500
Total cost $5300 + $3500 = $8800
Sell the stock at current price of $96
Revenge $96 * 100 = $9600
Profit $9600 - $8800 = $800
Is the above correct or am I missing something? All the calls in the above image appear to offer the same arbitrage opportunity.
Thanks