Conversion / Reversal Arbitrage Calculator
Lock-in profit of a conversion (long stock + synthetic short) after carry and costs — the market-maker's bread and butter.
Formula
Conversions monetize put-call parity violations: buy stock, sell the synthetic (short call, long put). After financing and fees the edge is usually pennies — which is precisely why parity holds and why this is a market-maker volume game, not a retail trade.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need conversion / reversal arbitrage calculator results fast? Analysts, founders, traders and finance professionals use the Conversion / Reversal Arbitrage Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Conversion / Reversal Arbitrage Calculator
Lock-in profit of a conversion (long stock + synthetic short) after carry and costs — the market-maker's bread and butter. Conversions monetize put-call parity violations: buy stock, sell the synthetic (short call, long put). After financing and fees the edge is usually pennies — which is precisely why parity holds and why this is a market-maker volume game, not a retail trade. The governing relationship is profit = (C − P) + (K − S) − carry − costs. The Conversion / Reversal Arbitrage Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Conversion / Reversal Arbitrage Calculator
- 1Enter Stock price, Strike, Call price (sell), Put price (buy), Funding rate (%), Days to expiry into the Conversion / Reversal Arbitrage Calculator.
- 2The result is computed automatically using profit = (C − P) + (K − S) − carry − costs — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Conversion / Reversal Arbitrage Calculator?
- ✓Computes conversion / reversal arbitrage calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Conversion / Reversal Arbitrage Calculator?+
Conversion / Reversal Arbitrage Calculator uses profit = (C − P) + (K − S) − carry − costs. Conversions monetize put-call parity violations: buy stock, sell the synthetic (short call, long put). The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Conversion / Reversal Arbitrage Calculator need?+
Enter Stock price, Strike, Call price (sell), Put price (buy), Funding rate (%), Days to expiry and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Conversion / Reversal Arbitrage Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Conversion / Reversal Arbitrage Calculator?+
After financing and fees the edge is usually pennies — which is precisely why parity holds and why this is a market-maker volume game, not a retail trade.
What is the Conversion / Reversal Arbitrage Calculator based on?+
The method follows authoritative sources: Cottle — options as a strategic investment; conversions. The formula and references are shown on the page so you can verify and cite the result.
Related Finance tools
Human Life Value (HLV) Calculator
The economic value of your future earnings to your family — the income-replacement basis for sizing a life-insurance cover.
● LiveTerm Life Insurance Coverage Calculator
How much term-life cover you actually need — replacing income, clearing debts and funding goals, net of existing assets and cover.
● LiveDIME Method Life Insurance Calculator
The DIME formula — Debt + Income + Mortgage + Education — a fast, complete way to size a life-insurance cover.
● Live