If I grapple or am grappled and so gained the grappled condition, do I still threaten (and can provide flanking)?
PRD wrote:
Grappled: A grappled creature is restrained by a creature, trap, or effect. Grappled creatures cannot move and take a –4 penalty to Dexterity. A grappled creature takes a –2 penalty on all attack rolls and combat maneuver checks, except those made to grapple or escape a grapple. In addition, grappled creatures can take no action that requires two hands to perform. A grappled character who attempts to cast a spell must make a concentration check (DC 10 + grappler's CMB + spell level), or lose the spell. Grappled creatures cannot make attacks of opportunity.
A grappled creature cannot use Stealth to hide from the creature grappling it, even if a special ability, such as hide in plain sight, would normally allow it to do so. If a grappled creature becomes invisible, through a spell or other ability, it gains a +2 circumstance bonus on its CMD to avoid being grappled, but receives no other benefit.
Attacks of Opportunity wrote:
Threatened Squares
You threaten all squares into which you can make a melee attack, even when it is not your action. Generally, that means everything in all squares adjacent to your space (including diagonally). An enemy that takes certain actions while in a threatened square provokes an attack of opportunity from you. If you’re unarmed, you don’t normally threaten any squares and thus can’t make attacks of opportunity.
My GM points out that I have to be able to make AoOs for threatening. Is he right?