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Strategies & Market Trends : Arbitrage Plays -- Ignore unavailable to you. Want to Upgrade?

To: semi_infinite who wrote (158)2/1/2000 2:18:00 PM
From: Q.  Respond to of 376
 
re. ETEC/AMAT, oops, sorry, I should have typed 0.649 shares of AMAT per share of ETEC, just as you said.

It hasn't been amended. I just mistyped it.

I did use the correct ratio in calculating the discount.

I also should mention that I didn't include any interest costs on the long position in this arbitrage, when calculating my gain. The interest could amount to a couple of points, depending on how long it takes for the discount to narrow, thereby offsetting some of the gains.



To: semi_infinite who wrote (158)2/1/2000 2:29:00 PM
From: Robert L. Jacobs  Respond to of 376
 
I believe you are correct that the exchange ratio is .649 AMAT shares for each ETEC share, also it appears that this is the ratio that D used in his calculations, rather than the erroneous .692 which he had in his post. (After posting this I see that D has also caught his error, while I was typing my post.)


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