market is pricing in discount for the following reasons
1. poor buy depth/liquidity. current market price is 30c, but the highest bid is only 26c, so option buyers arent buying into the intrinsic value of 30c - 20c ex = 10c price for ACZO just yet.
2. when a stock trades below option ex price with still plenty of time to run, market usually prices in premium. but when stock starts trading above ex price, market will gradually price in discount on options for the factor that options require one extra step of conversion.
my understanding anyway
the seemingly large discount on ACZO should reduce a lot as the liquidity on FPOs improve
ACZ Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
