Timeline for Intuitive explanation of put option pricing based on put-call parity
Current License: CC BY-SA 4.0
3 events
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Jan 10, 2021 at 10:33 | comment | added | Jan Stuller | @amdopt: that's a good point from a retail market perspective. In a wholesale market though, the cost to borrow the stock might actually be cheaper than what you can get in the interbank money-market by re-lending the cash you receive from (short)-selling the stock. Not always, but can be the case. | |
Aug 13, 2020 at 13:17 | comment | added | amdopt | The rate to borrow stock is always higher than the interest you recieve from your broker on your excess cash. Some brokers don't pay interest on collateral cash at all anymore. | |
Aug 13, 2020 at 5:26 | history | answered | StackG | CC BY-SA 4.0 |