Arbitrage

For those who are unaware, arbitrage is a key concept that makes sure that securities are properly priced in a market. I was reading the wallstreetjournal a while ago and i remembered that Countrywide Financial was supposed to be bought by Bank of America with a share swap of 0.1822. Curious as to whether the arbitrage would price the two securities properly, i did some research online. Countrywide Financial ceased to be independent on 30/06/2008 at a price of 4.25. At a share swap of 0.1822, it was priced at around 23.32 per Bank of America share. The ending price of Bank of America for the same day was 23.87 (according to Bigcharts.com.) The slight difference in prices is due to transaction fees, commissions fees are other miscellaneous stuff. I would say that arbitrage did a pretty decent job.

Asshole

I normally don't rant about people on the class blog, which is afterall, a public domain. But today, during a tea session in MinLaw, I met an asshole. Without rhyme or reason, or any provocation, that asshole said to me that I can't break bond as the government has planted a bomb in my mother. The choice of topic and the absurdity of the comment caught me by surprise, and i remained speechless and couldn't give a rejoinder. I spent the next two hours running through a series of replies that i could say to him.

What I really wanted to say to you is " You fxxking asshole, may you rot in hell for wasting two hours of my life."