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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.22+1.8%Nov 28 9:30 AM EST

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To: J.S. who wrote (3431)4/26/1998 9:40:00 PM
From: Jan Crawley  Read Replies (4) of 164684
 
I like your comment about this loan being like a giant put option. The lender can eliminate most of the risk then by buying put options on AMZN and may potentially make out on both transactions. Because of position limits on the options exchanges, private arrangement with a big Wall Street firm would have to be arranged. The "discount" could be used to fund these puts.

Hi J.S.(and the others), Excellent discussions covered in this weekend's posts here. I have learned a lot. One quick (and maybe not very smart) question regarding to the above discussion / assumption: Would'nt a giant put option (shorting the Amzn stocks) materially affect Amazon's immediate/short/long terms stock prices?

Also, is it possible that the debentures may carry a fixed conversion agreement/requirement?

Jan

P.s. Thanks for the Cube's post; I appreciate the information.
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