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Zions as in ZION? (not that I can find anything else)

If anything is short to early medium term and priced at 70c on the dollar, buy two $5 put leaps for Jan 2011 (will cost you just over $100) and buy the bonds. You buy at +-80c on the dollar, and your bankruptcy/FDIC seizure risk is covered by the LEAP put.

Arbitrage is highly profitable when it works.

Or am I missing a piece of the puzzle?

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