But so far, due to the speculative nature and unstable borrowing fees of AMC's stock, the APE conversion plan has only caused a major headache for arbitrage traders.

A proposed ETF conversion offers arbitrage opportunity for FEI investors. The merger is expected to eliminate the CEF discount and provide an opportunity for investors to exit at NAV.

Convertible arbitrage managers, last year’s punching bags, have turned in good performance in 2006 and in the third quarter they saw $2.29 billion in new assets, the second-straight quarter of ...

There are usually transaction costs for the conversion, but amount is insignificant. Another investment strategy discussed in paper is arbitrage without conversion, or a 'buy-and-hold' approach.