Is it true that the ability to borrow GM shares to short, equates free money on the conversion play? (Long synthetic GM/ short GM stock.) Does GM go ex-div before Feb expiration, or am I correct in this assumption? I'm aware of the risk of having the borrowed shares called back before expiration.
be careful if they change or don't pay the dividend... it has happened before... by the what exactly are you seeing.... gm should go ex-div around 02/08/06 but as of yet i do not believe it has been confirmed
usually the option crowd has a good handle on whether the div will be paid... the combo is a bit like truth serum... however it is priced is what the expectations of the floor is... and they are definetly wired...to say the least...