Ann: US$50m Conditional Funding From Bank of America, page-22

yeah but at 4c what happens ?
heads gone from 1.5 to 4, giving a return of 2.5/1.5 which is 1.67 times return (on top of what you put in)
but the oppies would be (with zero premium) 4-2 = 2, and 2 minus 0.5cent is 1.5, and 1.5/0.5 gives a 3 times return on the oppies...

so if the sp gets to 4 cents and the oppies show no premium and simply follow with a 2c difference, one gets 1.67 time profit on the heads, but 3 times profit on the oppies...

and the higher it goes, the better it gets...
at 5c, heads profit would be 5 - 1.5 = 3.5 over 1.5 gives about 2.3 time profit (on top of what you put in)
but oppies; 5 - 2 = 3c; 3 - 0.5 = 2.5 over 0.5 gives 5 time profit

so if you are in this one, thinking that it will realistically get over about 3cents, then getting the oppies at 0.5 rather than the heads at 1.5 makes sense..