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[sharechat] FFS and FFSPA relative prices

From:	"George Hill" <ghill@buzzavox.com>
Date:	Thu, 4 Oct 2001 15:00:37 +1200

Perhaps someone might satisfy my curiosity regarding the relative prices
of FFS and FFSPA?

1. Why does the FFSPA price tend to be weaker than FFS? I would have
expected it to be the other way, given the preferential conditions
attached to the FFSPA stock.

2. Why don't traders arbitrage between the two, so that the price
differential is removed? Although it's only usually about 1c when it
occurs, in % terms 1c/25c = 4% it should be worth arbitraging...
Shouldn't it?

George 


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