Dividend Arbitrage

sle · Mar 14, 2013

Quote from Alphaman84:

You can pay for the put by selling a call.

So, you are short a forward (put - call = forward) ?

Alphaman84 · Mar 15, 2013

Quote from sle:

So, you are short a forward (put - call = forward) ?

Long stock, short call + long put.

Alternatively long stock + short ITM call. This is the riskier version as the buyer of your option can exersice before you get your dividend money. But if the call has time value its not a big deal.