Today (5/3/2010) towards the end of trading hours, I found that Crompton Greaves futures were trading at at Rs. 10 discount vis a vis cash (Rs 435 vs 445). There was no time to think so I quickly bought one lot of futures, which I got at Rs. 436.
Monday (8/3) is the ex date for bonus (3:4) and dividend of Rs. 1.40. Since futures lot will increase proportionately to bonus on Monday, the difference in price should not have been more than, say, Rs. 2.
I have the following doubts:
(1) Did I make any mistake by buying the futures CG instead of the same stocks in cash?
(2) Is there any hidden disadvantage for buying futures just before the record date of a bonus?
I look forward to advice from experts.
Monday (8/3) is the ex date for bonus (3:4) and dividend of Rs. 1.40. Since futures lot will increase proportionately to bonus on Monday, the difference in price should not have been more than, say, Rs. 2.
I have the following doubts:
(1) Did I make any mistake by buying the futures CG instead of the same stocks in cash?
(2) Is there any hidden disadvantage for buying futures just before the record date of a bonus?
I look forward to advice from experts.