5 March 2013 – Emitters Use Spare Carbon for Options Cash, Climate Mundial Says – Bloomberg

Selling calls at strike prices just above the market rate attract a relatively high premium, Rossetto said on Feb. 27. The trade boosts returns because call sellers collect the money paid for the option no matter what happens to the permits. If the price of carbon rises, the seller forgoes any profit beyond the option premium plus the strike price.

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