Arbitrage Gains

Strategies for arbitrage on stock specific options

A significant development in the derivatives markets last week was the proposal of the advisory committee on derivatives of the Securities and Exchange Board of India (SEBI) to allow banks and FIIs in all approved derivative products and introduction of margin trading.

This movewill definitely help the market gain efficiency and thus minimise the mispricing to a great extent. Of course, without a proper stock lending system mispricing can