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Usually you don't borrow so much to buy them: they are cheap if they are "out of the money" (little probability of turning true but you buy it to hedge against a market change disastrous for your other investments). And simple options are mostly traded for arbitrage (you buy and sell at the same time, some two stuffs of very close value because you found someone ready to secure the deals with you at a price spread that will make you a little money whatever the outcome).

Pierre
by Pierre on Wed Jul 4th, 2007 at 01:13:06 PM EST
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