Comment on Basics on SLB (Stock Lending & Borrowing)

Nithin Kamath commented on 22 Jul 2016, 07:47 PM

If the futures is trading at a discount to the stock, makes sense to borrow. So stock is at 102, futures is at 100. Borrow the stock and sell it int the market at 102, buy futures at 100 same time. When the spot and future price is same, do the reverse trade. Riskless 2% returns.

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