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Explaining Bear Stearns' Current $7 Price

Other possible explanations:

Yes Voters:
1. JPM could buy the shares themselves up to some price to insure the deal.

No Voters:
1. CDS owners would certainly buy to prevent a default.
2. BS shareholders on sentiment that it's a raw deal.
3. Other potential acquirers -- although I agree this is a low probability event unless the valuation is way off.


Indifferent:
1. Momentum traders knowing this could climb on board accentuating the move.
2. Option MM's hedging the above.