Thundercat asked: I understand that a butterfly spread using call options is a debit spread. Why must it be a debit spread in order to be rational (i.e. no arbitrage). It seems that in order to be rational: the prem on earned on 2 calls at K2 must be less than the premium payed for [...]
Posts under ‘Personal Finance’
Which of the following four hedge fund strategies would be most likely to include the other three strategies?
Gags asked: a. Merger arbitrage b. Fixed income arbitrage c. Relative value arbitrage d. Convertible arbitrage Ans Plz
How does Balance Transfer Arbitrage affect FICO?
harvey7415 asked: I actively do balance transfer arbitrage. I have almost $100,000 in credit card debt, all at 0-1% APR. I have almost 40 revolving credit card accounts. No late payments ever. I believe my current credit score is about 620-630. How will doing more arbitrage affect FICO? How will paying off balances improve my [...]
I have an idea about how to pay off my student loans. What’s your opinions? See below?
michael m asked: All numbers are rough numbers, so the idea comes through better: I borrowed 20,000 from the government, which I am set up to pay back at 5% interest over the next 10 years. If I were to lend 20,000 to a bank at a higher interest rate, over the same time frame, [...]
Is this a good arbitrage opportunity?
virgil asked: Get a home equity loan for less than 5% then use that money to invest in bond closed end funds (ACG, TEI) yielding 8-10 pct and pocket the difference? What would be the risks to this strategy? The home is paid off already.