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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (20464)5/21/2009 1:30:29 PM
From: RockyBalboa  Read Replies (1) | Respond to of 71461
 
in BK not much. For the future contract, I must take delivery of the stock. For the calls, If one dares to exercise them I´d laugh even more. Otherwise I keep the 60c.

For now, the higher GM squeezes the better - because of the no arbitrage condition the calls must trade at no discount.

Here is one interesting arb:

The 2.0 call trades at 23c; the 2.0 Put at 1.50, so this implies a price of 77c for GM. Correct? (like short the put, buy the call).
The 1.0 call trades at 61c; the 1.00 put at 60c when sold, sells the stock at $1. Correct?

Same maturity, thats a free arb of 23c (before fees)