HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
If i Learned correctly.... Definitely not Pure Arbitrage
If you Bought one share of Changeup OW stock at 19.71 and it did less than that then you would lose money. IF if it did exactly that you would lose money because of commission.
If you short one share of $25 call at 1.34 and it does more than 25 you lose money. If it does less than 25 but not less than 25 minus the 1.34 and commission than you lose money.
Also if you buy 1 $25 put at 3.97 and it does more than 25 than you lose money and if it does less than 25 but not less than 25 minus the 3.97 and comission than you lose money. If you bought 1 put. at 3.97 the movie would have to do less than $21.03 and commission for you to make money.
Arbitrage? Aug 01, 19:20
Star Bonds can be arbed. Aug 01, 20:29
I think my example is pure arbitrage -- 100% probability of making a profit doing this trade sequence with derivatives.... Aug 01, 20:46
If i Learned correctly.... Definitely not Pure Arbitrage Aug 03, 17:04
Not my understanding Aug 03, 23:16
yeah its not ARB unless its already made more money than what the stock or bond is trading at {nm} Aug 04, 07:30
I disagree, it IS 100% arbitrage....(Dorfman et al.) Aug 04, 21:25
It's a "Convergence Trade"... i.e., arbitrage Aug 04, 21:36
No, a convergance trade only involves 2 assets Aug 04, 23:04
alfpaul -- convergence involves two POSITIONS, not two ASSETS - nm Aug 09, 20:31
I see your point Aug 04, 23:10
