SIB - Deemed DividendThe other factor that will affect how many shares are taken up are the tax consequences. The paid up value is only $36.45, so even if you buy the stock at $925 and get taken out at $975, you do not pay a capital gain on the $50, but instead the $938.55 counts as dividend income and you must pay tax on this, offset by a capital loss of $913.55.
So, really it only makes sense to play this as an arbitrage situation if you can do so in a registered account where dividends are tax free.
There may be other situatiuons where it makes sense, but look at your tax situation carefully.