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This is the dividend minus the amount that would be withheld from an American shareholder. (The Canadian arb also pays the American arb an amount equal to any share price gain during this period, protecting the American arb from any loss on the short sale. Neither arb is to make or lose money on share price changes.)The American arb passes to the Canadian arb the interest earned on the short sale proceeds, minus a discount.The American arb passes to the fund the $22,950 received from the Canadian arb.
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