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Technology Stocks : Ascend Communications (ASND)
ASND 202.23-4.2%Dec 2 3:59 PM EST

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To: Sanzen who wrote (51482)8/3/1998 6:14:00 PM
From: Jan Crawley  Read Replies (1) of 61433
 
Sanzen,

You comments Re-the Arbitrage gain are valid when you consider 1. time value of money 2. opportunity costs. In general, arbitrage is some what a (less reward)/(less risk) investment position.

However, if you initiate the arbitrage position at the same time via your broker, the margin requirement should be much less b/c the boxing effect.

In Boston View's case, if he already owns Stratus and is planning to take the profit now or upon completion of this merger; an arbitrage position would provide approx. $1 1/2 additional profit per share.

I am new in this type of strategy/discussion; so feel free to correct me.
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