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To: yard_man who wrote (51703)5/24/2006 10:57:37 AM
From: LLCF  Read Replies (1) | Respond to of 116555
 
<I am sure GM isn't selling naked calls ...>

Then they're estimating how much gas they will need at what price and "locking in" that price by buying calls or forwards or whatever on the market. They're going to pay a markup for that because of their junk status. No one wants to be their counterparty (as you say they're doomed).

DAK