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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: OX who wrote (29732)9/18/1999 7:08:00 PM
From: taxman  Respond to of 74651
 
"I've read [arb opportunities] only ever get out of whack by 1/16 or 1/8."

i believe that is correct. in actual practice a riskless 1.5 point profit does not appear too often. i was trying to illustrate why that is the case as well as the relationship between put and call prices.

regards