A <u>boundary violation</u> is a serious breach that results in harm to clients and is therefore unethical.
When the best bid price for an option is less than its intrinsic value, or the amount by which it is now in the money, this is known as an exercise boundary violation (EBV).
The breaches are typically fewer than average when investors choose to sell at EBV prices, indicating that they are able to fairly avoid the biggest boundary violations. Just 12.77% of trading activity and 2.25% of transactions in the sample's in time money (ITM) options occur below the boundary price, yet this still equates to a monthly cash loss from suboptimal trades of up to $32.9 million.
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I'm sorry I did not understand. Would you write clearly again.
I believe the answer is separation of powers
