Re:Michael Burry a.k.a. "Big Short",discloses $1.1B bet agai...
by stevefan1999 on Tuesday November 04, 2025 @08:22PM
(#45817946)
Only applies to European Options
[ Parent
| on HN ]
Re:Michael Burry a.k.a. "Big Short",discloses $1.1B bet agai...
by JumpCrisscross on Tuesday November 04, 2025 @08:30PM
(#45817990)
> Only applies to European Options
Absolutely false.
Options theory typically starts with European non-dividend paying options for simplicity. PCP applies to American-style options on dividend-paying stocks, you just get a solution with pairs of inequalities defining bounds. That leads to similar arbitrage and conversion mechanics with similar implications for market participants.