Question: This is base on hedging at Porsche- case W04C40 5. Do you think Porsches strategy of using stock options to acquire a stake in VW
This is base on hedging at Porsche- case W04C40
5. Do you think Porsches strategy of using stock options to acquire a stake in VW (instead of buying stocks directly) is a sensible one? (Recall that a call stock option gives the holder the right, but not the obligation, to buy the stock at the strike price.) Or do you agree with the critics who argued that Porsche was speculating with shareholders money and that it had become a hedge fund that neglected its core business?
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