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To: sergio who wrote (32544)	1/9/1998 8:06:00 AM
From: Kevin	Respond to of 58727

>>>Happy New Year! Hopefully this year will be more prosperous one<<< Hi Sergio. Happy New Year to you as well. Alot of good people came to this thread in '97. I have a good feeling that '98 will be great with all of the ideas and techniques that are shared. >>>The upper/lower trigger point for program you mentioned are specific to your company right?<<< No. Actually, I'd describe them more as 'generic'. Although their theoretical, the majority of program buys and sells should happen around these levels. Reuters & S&P also quote theoretical levels. When you refer to a specific company's data, their levels may differ depending on if they want to increase or decrease their equity exposure. >>> Or is it the same for all programs? I think it is different for each because of not having same cost for each therefore everyone has slightly different trigger depending on cost to carry.<<< I completely agree. Other than equity exposure, transaction costs are really the only variable that will change from company to company. Risk Free rate should be the same: currently arbs are using 3-month Libor which is 5.6563% Nobody can argue the amount of dividends that the basket will pay b/t now and expiration. And nobody can argue how far out expiration is. But even with some companies having higher equity exposure and some lower, and some having higher costs and some having lower, it pretty much equals out and the buys and sells happen very close to the theo levels. Take care!