Hi,
Just curious if anyone has insight on why AMEX-traded EGO doesn't seem to have put-call parity. This isn't due to a hard-to-borrow stock, either... especially since in this case, call IV is far greater than put IV.
EGO, $8.20
July $7.50 call: $1.1 b, $1.2 a
July $7.50 put: $0.20 b, $0.30 a.
Even if you hit the bid on the call and the ask on the put, you would still have $0.10 of arb profit on the result.
(The same thing exists with AMEX-traded MFN as well.)
The above prices are all from EOD data, so maybe there's just something quirky here with the AMEX-listed stocks?
Just curious if anyone has insight on why AMEX-traded EGO doesn't seem to have put-call parity. This isn't due to a hard-to-borrow stock, either... especially since in this case, call IV is far greater than put IV.
EGO, $8.20
July $7.50 call: $1.1 b, $1.2 a
July $7.50 put: $0.20 b, $0.30 a.
Even if you hit the bid on the call and the ask on the put, you would still have $0.10 of arb profit on the result.
(The same thing exists with AMEX-traded MFN as well.)
The above prices are all from EOD data, so maybe there's just something quirky here with the AMEX-listed stocks?