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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?


To: Dr. Godless who wrote (1380)5/11/1999 9:20:00 PM
From: Daniel Chisholm  Respond to of 1598
 
There must from time to time be disagreements between MMs in the two countries as to the appropriate IVs. So what happens when there is?

My guess would be, when the disagreements become large enough to be worthwhile, that they would end up trading with each other, either directly or through an intermediate arbitrageur.

Porter, any comments on this? I assume (!) that you guys would at least be aware of what other markets are doing, is that all that keeps prices in line between exchanges? Or are options market makers or specialists able to trade with each other directly?

- Daniel