How to Hedge DB's rights offering?

Discussion in 'Stocks' started by mskl, May 23, 2014.

  1. mskl

    mskl

    DB will be issuing more stock via a rights offering. The price isn't determined yet but it looks like the market is suggesting the equity will drop about $2.50 when the rights go ex.

    Any idea if there is a derivative product I can use to hedge this?
     
  2. If you don't want the rights, you can sell tomorrow and rebuy the common later, or you can hold the common and sell the rights once they start trading.