The point of is there's no such thing as a perfect hedge. And timing is everything too.
As
@mistie said, those who have hedged in recent weeks and months have significant losses to show for it.
Since MZN is being propped, what will happen when the props are removed ?
What will happen as the days go by ?
No trades today (CommSec), no one wants to buy at $0.008.
MZN could hit or close at $0.007 today IMO.
If hedging is the goal, why do it at $0.007 when one could possibly do it at $0.005 next week?
Remember, the parties will be notified 1-2 days before judgment is handed down of
the date on which judgment will be handed down.
Is the date that judgment is to be handed down itself 'market sensitive information'? I don't think so. If it is NOT 'market sensitive information' then wouldn't MZN directors and others be able to bail out of MZN 2 days before judgment is due to be handed down? In which case wouldn't that be the best day to take out a hedge? (Why anyone would want one is still beyond me).
PS. Read WA Supreme Court practice directions, page 232 (?) says the parties can request an advanced copy of the judgment at 10 am the day before judgment is due to be handed down. This suggests the parties might know 2 days before the day the judgment is due to be handed down
the day on which judgement is due to be handed down. If it's two days prior then a TH may not necessarily be required until 10am the following morning when the advanced copy is actually made available. This would give any nervous MZN directors a chance to exit 2 days prior to judgment being handed down, but before actually receiving an advanced copy of the judgment.
Personal opinion, pure speculation, DYOR, seek professional advice, I'm no expert etc
