Advantage of short-term discrepancies

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-Discuss how this might be identified and what type of trader might be able to take advantage of these short-term discrepancies.

-If arbitrage opportunities exist, describe specifics on how the market might react and how stock and call prices might be affected.

-Do cursory internet search to see if there are any articles that highlight instances of this phenomenon. There have been a series of high volatility periods, from the late 1980s through 2014. You have a wide time range where examples might be found.

Reference no: EM133002437

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