costs costs costs, page-22

The bank has $11m on loan to View. The negative risk of that not being repaid has increased to a point that the bank looks at other means to reduce the possible net loss. Selling the financial instruments and collecting a substantial fee for doing it is the obvious way to reduce their net exposure. Tyat's what they have done. It is not uncommon. View have had to spin it by saying they are now fully exposed to a riosing gold price. Answer me this - they had already paid for their puts (insurance against a falling gold price). If they had just kept the puts it would have cost them nothing, even if the gold price went up and the puts expired worthless. WHY then would they sell the puts and pay a fee to do it if they were not required to do so??