Students develop an understanding of put-call parity, the trader point of view, making them the practical aspects of how arbitrage works in the options markets to investigate. The setting for the event shortly before the introduction of put options in 1977. After a four-year experiment trading call options, the U.S. Securities and Exchange Commission (SEC) start on trade in put options. Ed Burton, a trader at Smith Barney, is faced with the founding trading strategies based on … Read more »

Students develop an understanding of put-call parity, the trader point of view, making them the practical aspects of how arbitrage works in the options markets to investigate. The setting for the event shortly before the introduction of put options in 1977. After a four-year experiment trading call options, the U.S. Securities and Exchange Commission (SEC) start on trade in put options. Ed Burton, a trader at Smith Barney, is faced with the founding trading strategies on put-call parity.
This is a Darden case study.
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Robert M. Conroy
Source: Darden School of Business
3 pages.
Release Date: 31, January 1991. Prod #: UV0074-PDF-ENG
Smith Barney, Harris Upham and Co., Inc. HBR case solution

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