GREY:AVGCF - Post by User
Comment by
MiningMonsteron Apr 02, 2012 9:46pm
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Post# 19750811
RE: Rocks for brains
RE: Rocks for brains God Rocks, you are an idiot.
The forward market for gold sales is huge, if you sell forward you receive an amount is extremely close to market price less the discount for prevailing interest rate * time to excercise. Thats exactly what AVR did.
If you sell several options to buy gold at $700-$900 for $25 million, they are paying you $25 million for the upside over and above the $7-900 strike. When the options expire and are excercised, the strike price of $7-900 is subtracted from the market price of gold to determine the payment. There is nothing unusual about this arrangement.
Please shut up about the forward sales Rock you are dead wrong, I don't know how many people have to tell you this before you realize you are in over your head (even though this the simplest of plain vanilla transactions out there). Isnt the share price reaction, the analyst comments or several corrections from SH members enough to think you might be wrong? You should take a starter course in securities like the CSC.