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To: geoff s. who wrote (127)3/8/1998 9:48:00 PM
From: Scott Mc  Read Replies (1) | Respond to of 530
 
Geoff, its not quite as simple as this, however imagine that there is a convertible which converts into 10 shares and the common trades at $100 a share. Buy 1 convert @1000, short 10 shares and collect the bond interest payment with ABSOLUTELY(while 99.9%)no risk..Scott

Some Market players can do this with virtually no commission, no margin.. you could also only short 5 shares and if it goes up you lose on the stock but make more on the convert, and if it goes down you make on the short and (maybe not lose on the convert because the interest payment keeps the convert up).