OTCPK:CPPMF - Post by User
Comment by
Rational43on Apr 26, 2021 9:33am
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Post# 33065709
RE:Why did they hedge so much
RE:Why did they hedge so muchThey bought put options.
That means they spent a bit of cash, but they can guarantee a floor of $3.75, but there is no limit to the upside.
If copper stays above $3.75, the little bit they spent buying put options was wasted.
A better way to hedge because upside is still there.
It was probably a piece of getting more bank financing for Eva.