(1) A riskless arbitrage in which a put is purchased along with the underlying stock. The put is purchased when it has a time value premium less than the impending dividend payment by the underlying stock and is closed after the stock goes ex-dividend. (2) A form of risk arbitrage in which a similar procedure is followed except that the amount of the impending dividend is unknown and therefore risk is involved in the transaction. See Ex-Dividend Date; Time Value Premium.