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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?

To: Porter Davis who wrote (1472)	2/8/2000 8:04:00 AM
From: Terry Maloney	Read Replies (1) \| Respond to of 1599

Porter, thanks for the comments on ABX ... seems the rally has fizzled for a while; meanwhile, good to hear that BCE is providing you with some action. Regards, Terry

To: Porter Davis who wrote (1472)	2/10/2000 4:27:00 PM
From: tyc:>	Read Replies (1) \| Respond to of 1599

I wonder if you could tell us a little about hedging. I was listening to AG and company today talking about "OTC derivatives" and why they should be excluded from USG controls. I feel sure that one of the points made was that these transactions play no part in "price determination". I am thinking specifically of Barrick's purchase of call options. It seems to me that the counter party must hedge his position, and the only way to hedge would be to buy gold as a hedge. Just as all downside hedging put downward pressure on the price of gold, so all call-buying must put upward pressure on the price of gold. ? Is this patently wrong ?