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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: BostonView who wrote (51450)	8/3/1998 4:03:00 PM
From: Jan Crawley	Read Replies (2) \| Respond to of 61433

Can someone comment from an arbitrage standpoint as to how I should play my good fortune? The arbitrage play means: Shorting equal number of Asnd shares and, at the same time, long the same number(per merger ratio) of Stratus shares. For example(in your case), if 1. you hold 1,000 stratus shares currently, and 2. if you short 750 shares of Asnd at $50; (Stratus would most likely trades below $37.5(($50 @ .75 = $37.5)), then you will be holding an arbitrage position for this merger. p.s. Asnd closed @ 46 3/4 * 75% = $35. The diff. between $35 and Stratus's closing price gives you the arbi. premium. The risk being the time/uncertainty relate to the completion of the merger. Please correct me if I am wrong. Jan