BSC Butterfly

[QHTCapital]

I am trying to assess the risk and likelihood of BSC falling out of the 7.50/10/12.50 butterfly. Could anyone let me know the factors behind why BSC deviates from the JPM buyout price of $10/share?

 

[Bowgett]

Quote from QHTCapital:

I am trying to assess the risk and likelihood of BSC falling out of the 7.50/10/12.50 butterfly. Could anyone let me know the factors behind why BSC deviates from the JPM buyout price of $10/share?

Because it is not $10

It is 0.21753 shares of JPM. So essentially you are putting your butterfly on JPM stock.

 

[commiebat]

Quote from Bowgett:

So essentially you are putting your butterfly on JPM stock.

Plus, of course, the risk that something may go wrong with the deal or someone may offer a higher price. Those probably aren't likely since BSC is trading close to the buyout price, but you never know.

Also, that's a mighty wide butterfly on JPM - it'd have to go up or down 11 bucks or so to get past the wings.