If it did, you would buy the call put with the shorter maturity and sell put the call with the longer maturity i. Malkiel High Idiosyncratic Volatility and Low Returns: What you generally see is that far-dated OTM options are thinly traded with wide spreads and large gaps between strikes, and near-dated options trade very heavily ATM, so spreads are as tight as you're going to get there, we have a better market for OTM options here, but still with a fairly wide spread...
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