Replies to post #200307 on Fannie Mae-No Politics (FNMA)

[Fillmoepro]

Obi, so this is the OTC version of option trading? Ackman gets a 1 year contract to sell versus a 1 month contract in option trading. This is a locked bet for Ackman.

[SLJB]

Obit, I was curious to what your thoughts were on the timing of this particular bet as oppose to just him adding to his position . Is he trying to point to a catalyst around that date ?

Thank you for everything that you do here ! You are a tremendous help to all . We are really lucky to have you posting on this board .

[Blushing green]

Obit, can UBS or pershing pay off this deal whenever at any price (like an American option) or do they have to wait till expiration for this swap (like a European option)?

Also, UBS is already in profitable territory by ~300million?

UBS AG makes a profit of $305,113,45 by drawing and signing some papers plus any decrease in the beginning notional value.