This thread is interesting but in a bad way. The answer imo is “whatever Quantian will pay, plus the advantage in financing costs my superior balance sheet affords me times the leverage I can squeeze in.” 6-7K easily. https://twitter.com/Jesse_Livermore/status/1351969967172952070 …
Agree that capital treatment or tax effects make a difference. But the anchor price (assuming it pays nominal S&P dividend in $) should be the value of S&P, and adjust from there.
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Ignoring capital and tax effects for a sec, this traded much higher than S&P why wouldn’t I just go long S&P and short this to match all future cash flows, and get a risk-free return on the upfront payment?
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so... there are two issues, correct? 1) the dividend stream of the S&P will be cut during an economic down turn 2) inflation
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