Fascinating implications of both articles put together. Some...

Fascinating implications of both articles put together. Some execs may have potentially hedged personal risk (against say the company share price going down dramatically) but company does not hedge a similar market risk that has actually been recognised by some senior execs.

This is one simple cap & collar scenario to hedge against a falling share price. It is 21 December 2008 BNB closes at $26. You write a one year call option on BNB at close ie $26 on 2 million shares, earn say $3 per option written. You simultaneously buy a one year put option at $26 on 2 million shares at a cost of say $3. So you subsidise cost of put option by writing call - but either way you have effectively sold your shares. Figures will probably not work out exactly, but you can fine tune by changing one or both strike prices.

With the multitude of financial derivatives existing such as Contracts For Difference (CFDs) any transaction may not even pass through the market, but be entirely off market. But if you did as above you would financially have effectively sold your shares, but may technically still hold them!