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Comment by bvod

If you exclusively consider the value of the puts, then yes they made a killing. But Mexico didn't use the puts to take a huge directional speculative bet - it used them to hedge oil price risk, so the profits from this trade are structured to offset losses elsewhere. For example, sustained low oil prices will could put companies out of business or even make Mexican oil uncompetitive on a global scale.
parent bvod 6 years ago

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