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
There was no arb on gm, if that's the implication. The conversion market was priced at 5% carry, one year out.
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!