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Politics : Formerly About Applied Materials
AMAT 226.05+1.3%Nov 14 9:30 AM EST

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To: Cary Salsberg who wrote (45865)4/24/2001 8:19:33 PM
From: Ross  Read Replies (1) of 70976
 
OK, dumb question. Since arbitrage is supposed to be mostly done by real professionals, does the $5 difference mean that they think that there is a really good chance that it will not be approved? Or do they think that ASM will drop about 4 bucks in the next 15 days? Or are they not so professional?

I ought to read the details, but is there a cap on the SVGI price? If not, then I suppose the surest thing to do is short X dollars of ASML, while buying an amount of SVGI that will turn into that many ASM shares. That should only lose if the deal does not go through, right? Or, it would be bad if there was a dollar cap to the value that SVGI would get, and ASM went up a lot. Clearly, I haven't done this.

Thanks for any comment.

Ross
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