re: free money - long dong You would save, 6% on interest, but then GMI might pay a 6% dividend before Nov 2006, so they could cancel each other out.
However there's another reason why GMI options are probably cheap at the moment. Usually an option will trade at a price that is greater the longer the time to maturity because the longer the time frame the greater the chance that the option will be "in-the-money" (GMI will be > $1 in our example). The greater the volatility of a stock, the greater this chance and the greater the "time value" of the option. There doesn't seem to be anything in the GMIO price that reflects this "time value".
Hope that this is of some help.
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