in an efficient market the option price would be at least on par with the heads minus conversion price. Imagine options over CBA or BHP trading with the lag that these have - would be money for jam (and would never happen).
No efficiency at the spec end of the market, so buyers taking a long term position get a cheaper entry via MABOA and investors holding MAB that have a long term position can arb their MAB by selling MAB, buying MABOA and converting.
in an efficient market the option price would be at least on par...
Add to My Watchlist
What is My Watchlist?