Business and Personal Finance Dictionary

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• VARIABLE COMMON RIGHT
  
  Viacom issued VCRs in connection with its takeover of Blockbuster. (Source: Falloon, William. "The $48 and $52 Questons." Risk 8 (April 1995), pp. 48 ff.) Such a VCR is basically equivalent to a bearish Put Spread (long a Put struck at 52, short a Put struck at 48). The underlying price is the highest of four 30-day Arithmetic Averages for the price of Viacom Class B shares. The four 30-day averaging periods are distinct periods during the pricing period, May 23 - Sep. 28, 1995. To make manipulation more difficult, Viacom agreed not to buy its Class B shares during the pricing period. (Source: Bary, Andrew. "Drama at Viacom." Barron's, August 21, 1995, p. MW10.)
  
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