Comment on Basics on SLB (Stock Lending & Borrowing)

Harsha commented on 31 Aug 2015, 10:01 PM

Hi, I wish to have it in clear terms, so can you explain clearly considering the case of following example ?

Example: Suppose that, I’ve opened account with you, and now I observed an arbitrage opportunity as following

Stock Godrej Industries : Spot price 379.1, Oct fut-358.45, what I’ve to do now to profit from this, how much money do I need ?

Two more doubts:
1. Suppose that, the spot and future prices converge before the expiry can I buy back those share, or is there any kinda locking period?
2. Why there is no liquidity for near month, as I observed in the link you posted earlier in the comments section?

Thanks.

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