Put/Call Premium Difference

[Quanto]

Did you include the cost to carry the Conversation until expiration?

Is this really Conversation or rather Conversion?

 

[newwurldmn]

correct the "cost of carry" is built into the price of futures. But lets say that noone including me cant hold a position open for long. We can still do futures options and underlying future for far term and hold it for free (since future does not have any of those cost to carry.

No you can’t.

if a structure payout is different from the risk free rate with certainty it becomes arbitrage