HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
except that the MST is both about adjust and delist. also, meant arb only in technical sense of riskless profit.
i guess my bigger point was that the spread, except for transaction fees, shouldn't exist. i get your point that over time, the securities might diverge if you see a stock as having a potentially huge opening and freefall post that (e.g. New Moon). however, 1) regardless of the post-open adjust, the spread, if it exists, will always result in risk-free profit if you hold it until either delist or price convergence and 2) it certainly doesn't make any sense in that scenario to IPO the derivative $10 higher than what the moviestock is trading at, unless you're expecting the stock to have legs, which the vast majority of movies (avatar excepted, of course) just don't have.
how are CX derivatives priced? Jan 12, 18:50
when you figure that out, let me know Jan 12, 19:13
That was the previous method. Starting today, they IPO at the same price as the equivalent on Cantor Exchange. {nm} Jan 12, 19:25
There isn't any arbitrage between MST and CX Derivatives, because their values are tied to box office, not to each other. {nm} Jan 12, 19:51
except that both have to delist at the same price, right? Jan 12, 19:59
That's a fair point. The decision was made to mimic Cantor Exchange. {nm} Jan 12, 20:05
It wouldn't be possible to be ARB or BRA on Day 1 because there won't have been any box office reported on Day 1 Jan 12, 20:10
You'd have to come up with a different term for that... true, one or the other could be overpriced/underpriced Jan 12, 20:27
except that the MST is both about adjust and delist. also, meant arb only in technical sense of riskless profit. Jan 12, 20:38
this whole conversation is pointless, since Antibody said they are IPOing CX at Cantor Exchange prices, end of story Jan 12, 20:58