forward conversion

Discussion in 'Options' started by Option Trader, May 3, 2006.

  1. nope...

    it was just a way how you could have long stock to sell in a hard to borrow issue...

    you have already locked your trade so p&l is already set...

    long stock / short synthetic stock...p&l graph looks like a big X
     
    #11     May 10, 2006
  2. There was no arb on gm, if that's the implication. The conversion market was priced at 5% carry, one year out.
     
    #12     May 10, 2006
  3. Got it. i was looking at this statement in a vacuum(sic). i was thinking chi was long like some 40,000 deltas in GM. that would've been nice! :D
     
    #13     May 10, 2006