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I appreciate the detailed analysis here, but unfortunately it's moot.
Section 6.12 of the original SPSPAs reads (emphasis added):
Great post!
For some more transparency, I closed both legs of this trade earlier this week. I sold FNMAO for $3.77 and covered the FNMA short at $0.724. That's about a 23% gain on FNMAO and a 2% loss on FNMA for an overall gain of roughly 20%. Not bad, even though FNMAO's bid is $4.19 right now so I could have done even better.
I also could have made more if I had just bought FNMAO and not touched FNMA, but the juniors and commons tend to be positively correlated and I like to have a pair trade rather than a pure directional bet for non-core taxable account positions.