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OK, so if there is no dividend; and borrowing costs are small, then put-call parity will hold for American style options? BTW: when you're short stock, in the case where puts are more expensive than calls, dividends and borrow costs are just as much a factor for European style options as...

I read that it only works for European style options. Can anyone give me an example of how early execution/assignment would add risk to arbitraging IV differences between ATM puts and calls? Let's say the underlying is 100 and the ATM calls and puts are 6 and 9: if I shorted the stock; bought a...