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ChrisC_R

11/17/06 2:35 PM

#5586 RE: Elmer Phud #5585

What I meant was that they would not be sold for a profit by a retail investor prior to expiration, which action normally allows the dealer to cover his short hedge - which produces the MaxPain effect.

The hedge fund seller would certainly be "Put to", i.e. assigned, the shares, covering his short position.