Option conversions \ An arbitrage trade is so called because it can be used by the holder of a put to alter his position to a call or vice versa. Converting a put to a call involves the purchase of the put, purchase of the underlying instrument or future, and sale of the call.
Option conversions / an arbitrage trade is so called because it can be used by the holder of a put to alter his position to a call or vice versa. converting a put to a call involves the purchase of the put, purchase of the underlying instrument or future, and sale of the call.