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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: jackrabbit who wrote (6470)12/15/1996 10:23:00 PM
From: jmac   of 186894
 
As you kow, the Intel warrants track the stock almost point for point, MOst of the time, I dont let the calls get deep enough in the money to have the called away. But, to answer your question, if your calls were exercised, you would end up being short the intel stock and long the intel warrants. since they track each other, you're never at risk of having the market move against you. What you would do to close out the trade is buy the intel stock and sell the intel warrants at the same time. All of your positions would then be closed. There would be no need to "exercise" the warrants since they trade openly on the market. The story changes in March 1998 when the warrants expire.
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