Arbitrage, page-8

So next, you know what price is if you are the buyer? Yeah, not the lower one of the two. It is a miserable system. Like preempt I am about to close my account. Broker charges £600 annually just for the privilege of keeping the account open.

Where you can make a few dollars is where you have a dual listed stock ASX/LSE that is trading well in UK, but where on ASX, the options trade for less than the underlying share less the premium. You will need to own physical shares here in Australia which you transfer to UK in preparation of the trade.

Buy your options on ASX and a few hours later sell your shares on LSE. This is a simple arbitrage that works only where the volumes trading on LSE are much greater than ASX. You have maintained your share holding upon exercising the options yet made a profit. It is not without it's risks as you can get lumbered holding stock in London if it goes against you.