tag:blogger.com,1999:blog-20142791.post8512895407510887294..comments2024-03-11T07:41:19.149-04:00Comments on The Perfect Substitute: Australia joins the fray...Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-20142791.post-54861715665768029982008-09-22T12:43:00.000-04:002008-09-22T12:43:00.000-04:00You can create a synthetic short using options, bu...You can create a synthetic short using options, but the problem is that the person who takes the other side of the long put (typically an options market maker) hedges his risk by going short the underlying -- which they can't do anymore if short selling is prohibited. So you can expect to see a huge drop in the liquidity in the options market, and thus a higher cost for synthetic short positions.Thomashttps://www.blogger.com/profile/07581607263422875506noreply@blogger.com