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How the suspension of short selling can affect equity and derivatives trading?

April 26, 2017affect Business derivatives equity Finance Investing Selling short Suspension trading

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How the suspension of short selling can affect equity and derivatives trading?

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Put call parity is not maintained. The price of put options goes up without a corresponding decrease in the price of call options. This actually happens when a stock is so heavily shorted that it is impossible to borrow any additional shares to short. For more on put call parity see my answer to your previous question at http://answers.yahoo.