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To: Al Greenleaf who wrote (386872)	5/22/2009 3:45:31 PM
From: RockyBalboa	Respond to of 436258

It is called conversion. (if it is only with 2-strike options pairs it is called box). Both must be insensitive to the underlying price.

To: Al Greenleaf who wrote (386872)	5/22/2009 3:48:43 PM
From: Real Man	Respond to of 436258

It's called put/call parity, normally taken care of by the arbitragers (market makers), who have the advantage of trading without commissions or on the beneficial side of spreads. So, you simply won't find such opportunities - synthetic put and real put will have the same time premium, and if they don't, the corresponding risk free profit will immediately be taken. The source of the puzzle was found - there were no GM shares available to short. I went long GM calls and exited before the short squeeze of death exhausted itself. Some folks could still take advantage of this and make money risk free trading single stock futures for GM that somehow also reflected this highly peculiar pricing.