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What I don't understand is that right now there are bids in the...

  1. perplex
    17 Posts.
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    05/05/17
    10:43
    Post #: 24492717
    What I don't understand is that right now there are bids in the queue for the heads priced at 70c and asks for the options at 44c.
    Given that the strike price is 25c, you can buy and convert the options for 69c (i.e 25c + 44c), and simultaneously sell the heads for 70c, yielding a 1c risk-free profit. Why isn't this being arbitraged away? Is it just there isn't enough volume to justify the transaction cost?
    BIG Price at posting: 70.5¢ Sentiment: Buy Disclosure: Held
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    lightbulb Created with Sketch.  Great analysis
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