snaggOK you're not agreat fan of oppies.Now consider this - your...

snagg

OK you're not agreat fan of oppies.

Now consider this - your current heads buy order is for 25,000 x 39 cps = $9,750

Instead, you buy 42,391 oppies @ 23 cents each - this in effect gives you the opportunity of an interest free loan for 15 months.

i.e. excise price is 20 cents on 31/7/2008 or 42,391 x 20 = $8,478.20

Let's assume, just for the moment, that the sp is trading at 80 cents on 31/7/2008.

This is how you end up:

25,000 x 80 = $20,000 (profit $10,250)
42,391 x 80 = $33,912.80 (profit $15,684.60)

The net result is that you have increased your profit margin by more than 50%.