| Why At-The-Money Calls are Frequently Priced Higher than At-The-Money PutsThe Blue Collar Investor
click ↑ 4 Featured Intuitively, at-the-money (ATM) calls and puts should be priced the same. In most instances, this is not the case. ATM calls are generally priced higher than ATM puts. Why? The reason would center around the cost of carry. The buyer of a call can keep cash in their account, instead of purchasing the…