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To: Real Man who wrote (386663)	5/22/2009 2:59:51 PM
From: Al Greenleaf	Read Replies (2) \| Respond to of 436258

Vi, I found your suggestion regarding the GM synthetic Put most interesting. Usually I think of a synthetic Put as a Call option and a Short Sale only. Is there a name for such a 3-legged transaction as you describe? Is there any systematic way to find them? I'm thinking that to calculate a fair return on this, you divide the 4200 by the 12,700 short comittment plus the call cost of 2700, less Put income of 4200, or 4200/11,200 or 37.5%. Do you agree? What about margin requirement on the Puts? Holla if you find more like that! There is an article about "Conversion Arbitrage" which seems to be the same thing, here: i.investopedia.com