| 释义 |
L An ARBITRAGE strategy in the FOREIGN EXCHANGE market to take advantage of mispricing in currency FORWARDS. The conversion occurs when forwards appear RICH, and is created by selling a forward, buying a CALL OPTION, and selling a PUT OPTION (all with the same maturity date); if the forward is mispriced, the strategy yields an arbitrage profit. See also FORWARD FOREIGN EXCHANGE CONVERSION. |