Pirate Radio H$5 Call
| Symbol: | PADCA |
| Status: | Inactive |
| Delist Date: | Nov 16, 2009 |
Description
Options are Hollywood Derivatives based around a specific event. Typically 'calls' and 'puts' options are offered for a MovieStock opening in wide release. This form of speculation lasts only for the opening weekend.
Call
A call option speculates that the related MovieStock will have a higher box office take for its opening weekend than the strike price. A $20 call has a strike price of $20, and will delist at zero if the movie does not make $20 million or more during opening weekend. If the film makes more than $20 million it will cash out at a price determined by the following formula: (Actual Box Office - Strike Price). For Example if the film made $25 million the call would cash out at H$5.00 (H$25 - H$20).
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