Ann: CER Purchases Foreign Exchange AUD Call Opti, page-3

re: Ann: CER Purchases Foreign Exchange AUD C... Hi Neil
It's the other way around. It is in our interests for the aud to go down. Should the aud be above 1.03 at settlement date, cer will exercise it's option and still be able to convert the us$500m at 1.03.
If say the aud is at 90, cer would let it's option lapse and convert the usd at a more favourable rate of 0.90.
The cost of entering into the option ($14m) is the most we can lose irrespective of how high the aud goes.
Cheers