HOME | Definition of conversion arbitrage (CONVERSION ARBITRAGE, Conversion arbitrage)
A transaction where the asset is purchased and buys a put option and sells a call option on the asset purchased, each option having the same exercise price and expiry.
http://www.fx-forex-trading.com/glossary.htm
An investing practice which involves a long underlying position in an asset together with a short call and long put on the asset, where both options have the same exercise price and expiration date. A conversion is offset by a synthetic short underlying position.
http://www.equanto.com/glossary/c.html