Questions tagged [hard-borrow]

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How do borrow rates in single-stock options affect their prices

Would following approach be suitable: First calculate European option price (does it even make sense to do so, if we are talking about less than 30 dte?), take the diff between European and American ...
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Why does borrowability of shares inversely correlate with probability of assignment or exercise?

I transcribe 5:26 of this video. I don't know that YouTuber's credentials. So looking back here, what could possibly cause you to get assigned early? If we look right here, AMD shares are listed as ...
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Option Valuation With Hard To Borrow Rates

How would you include -in a simple way- high borrow rates, say 10%. Intuitively, for PUTs I'd set r as r - borrow_rate, to include the negative carry of the borrow. So If I'm selling puts, value would ...