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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Puck who wrote (1189)6/29/2000 3:12:00 PM
From: RockyBalboa   of 1438
 
Puck, it also works without discount....in examples I apply a discount because it shows how it works in reality. The effect is the same, because you can cancel out the discount on all "steps" of the process.

Hence you multiply the amounts with 0.66, from each step to the next (with a severe price drop) you can short the same $$$ amount of stock.
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