D daddyeaux Apr 19, 2004 #1 Let's say you short a SSF and you go long an equity common that pays a sizable dividend. Since the short SSF is not assigned the dividend, is there an arb. play here. or am I the last guy to figure out that this won't work.
Let's say you short a SSF and you go long an equity common that pays a sizable dividend. Since the short SSF is not assigned the dividend, is there an arb. play here. or am I the last guy to figure out that this won't work.
def Sponsor Apr 19, 2004 #2 Quote from daddyeaux: Let's say you short a SSF and you go long an equity common that pays a sizable dividend. Since the short SSF is not assigned the dividend, is there an arb. play here. or am I the last guy to figure out that this won't work. More... F = cash + interest - dividend, thus is should be priced in
Quote from daddyeaux: Let's say you short a SSF and you go long an equity common that pays a sizable dividend. Since the short SSF is not assigned the dividend, is there an arb. play here. or am I the last guy to figure out that this won't work. More... F = cash + interest - dividend, thus is should be priced in
D daddyeaux Apr 19, 2004 #3 It sounded good when I said it fast. I don't have a trading platform to try it... but I'd like to see what happens over a dozen stocks or so.
It sounded good when I said it fast. I don't have a trading platform to try it... but I'd like to see what happens over a dozen stocks or so.
S spreadem Apr 20, 2004 #4 There is a problem in trying to arb these two, because the SSF in not trading very actively.
