my comments are always genuine but admit that I may have misunderstood the hedging(?)
so is this a non-cash item required by IFRS or will they actually have to deliver into the hedging contracts?
my limited understanding is that they write a call and use the proceeds to buy a put to create a collar hedge
if the put is say 60 and the call 80, don't they have to deliver or settle the call contract given a price well above 80? this is a real loss isn't it just as the put would provide a real gain had oil price fallen below 60
regards
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