ikeep,I said many times already: this is not a sale. IT is an...

ikeep,

I said many times already: this is not a sale. IT is an option:

1. There is not a guarantee (obligation) that $20m will be paid by Wellington. Therefore, that $20m means nothing!

2. In addtion to giving away the free option, OCV pays Wellington to hold such an option!

Here is another analogy:

You own a house. And now you give me the option that I will buy it at say $500,000 within 12 months.

In commercial world, I should pay you to have such an option. Because if market improves, your house may worth a lot more. Say it becomes $1m in a few months time, all I need is to get the finance and buy the house at $500,000 from you and sell to the market and make half mil profit.
And if the market is bad, your house worth under $500,000, I simply walk away, because there is not an obligation for me to buy it from you.

The cost is the option I purchased from you.

This is what the option about.

Now, Wellington not only got this option for free, but also OCV is paying management fees for it!

Please read needle's posts.

Hope this helps.

Alpha