Otherwise one would have to demand a higher payoff.
From FT Alphaville:
Snap AV: Fancy a potential three-bagger?
(Unfortunately it’s Venezuelan)
From Stuart Culverhouse at Exotix Partners…Fortunately, Venezuela makes the lists at Euromoney:
We upgrade our view on the Venezuelan oil warrants to BUY from HOLD. This is based on our updated calculations for the upcoming payments. The warrants are indicated at US$6.25 mid-price basis (cob 14 February).
Warrants holders can receive payments twice a year if certain conditions are met. Each payment is however capped at a maximum of US$3 per warrant....MORE