Isn’t this Level 1 knowledge?
Nike Wrote: ------------------------------------------------------- > I haven’t gotten to the l3 readings, can you give > some examples? me either, but i know you can right futures/forward contracts on stock options/etc that you have but havent vested, therefore you can get some of the equity out and use the cash to build a more diversified portfolio. you can also write contracts that allow you to capture additional value as the underlying appreciates. is that right rohufish? ive heard about execs who own options in tech companies doing this.
I don’t know. If you short a future on stock that hasn’t vested, you reduce your exposure and effectively turn it into cash, but if your short future moves against you, and the stock hasn’t vested, you can’t sell it to come up with new margin. So you need cash on hand for that. The put option is better, but you’re continually paying a time premium for it.
there’s several options, depending on situation and tax planning goals. put options, completion portfolio/fund, futures, private/public exchange funds, etc. its all in L3. pass your exams, complete your CFA, never give up. and don’t be a dweeb like this guy…use your skills.
if he had that much at LEH and it’s locked up - can’t he make a synthetic option once he works for another company? just wondering how he would be stuck in this position.
But what happens to the LEF put options when the firm goes under? I think the book didn’t talk about it… 
what is weird is that einhorn is nowhere to be seen on TV and in the papers. the guy basically made a fool out of the CFO…man, if he was still short, what a coup!!!
JasonU Wrote: ------------------------------------------------------- > He doesn’t have a babe either… that’s Eliza > Dushku lol. i was just gonna say that