Thanks for clearing that up with me on the options. Basically if I understand correctly: in summary if the option is never covered before the buyback the shares are gone so option can never be covered?
Some interesting math for the issuer to determine how soon he does the buy back.
current they can buy
back@0.00827640 hours from now they can buy
back@0.006656+2 weeks they can buy back at under 0.005? 0.004?
Assuming my math is correct this is an explosively hot potato.. The math for the issuer is how long will he wait to buy it back vs. paying the divs....
I hope my numbers are wrong....
TAT.hot_potato
One question I have: Is the issuer restricted in their ability to restructure the contract? (I have seen in the past where a bond very much like this one recalculated the 'share' value from 1mh/s to something like 7mh/s)? ....options trading
For that matter why not just get right down to the heart of it and setup a futures market trading in projected network hashrate, just sayin...
and as 'Deprived' pointed out above me.. how does buyback fit into options trading? how is this normally calculated?
Buy-back for a bond would normally be at face value. This (and just about ALL 'fixed-rate mining bonds') aren't actually bonds. This is just a way for people who don't understand the math of mining to donate BTC to TAT - which isn't as bad as it sounds as you may donate less than on many other mining offerings based on actual hardware.
Mining securities, in general, make a profit for the issuers NOT for investors. That's why they don't buy back at face value - as that would keep the risk with the issuer.
On options there is no buy-back : the transfer of value there occurs either at purchase or at execution of the option (depending on how you value it). Here it'll primarily occur at buy-back as - until then - people will be exchanging them via the market at prices which ignore the reality of an impending buyback at below the traded price.
Show Posts
