First of all, it is arbitrage trading. The protagonist buys Russian copper mines, which is a spot purchase; in order to prevent risks, he made a hedge, that is, short-selling copper on futures. This is Short selling of futures. In this way, if the copper price falls, the spot loses, but the futures make a profit; if the copper price rises, the spot makes money, but the futures loses. In fact, this is a way to lock in profits, that is to say, he has locked in his own profits, and the investment made is his own, but the profits and losses caused by the rise and fall of the copper price are not his. In fact, it is to avoid the copper price. The impact of volatility on earnings is called arbitrage trading, also called hedging.
Sure enough, this mine is good, very good, and can make a lot of money. This investment is very good. However, the problem has arisen. The price of copper has risen, but the spot copper mines cannot be profitable due to the intervention of the Russian government; while the futures have suffered a greater loss. In order to make up for this loss, the protagonist has to borrow a huge sum of money. This hole is filled. At this time, if the spot can be sold at a better price, it can make up for the loss of the futures. This is what the protagonist is doing.
After analysis, the protagonist’s company did not produce huge losses, but was a cash flow problem. The huge amount of funds borrowed from peers could not be repaid. Therefore, it is now necessary to sell the copper mine to solve the cash flow problem.
Secondly, everyone is arguing about who bears the hole. This issue is more complicated, and the film did not explain it clearly. To clarify this problem, the following questions need to be clarified: 1. Is the fund borrowed by the individual or the company, and whether the futures is operated by the individual or the company. 2. Is the protagonist selling copper mine or his company.
This is how I judged: 1. The funds should be borrowed by the protagonist. This is different from China. The credit of individuals in the United States is very large, and the funds can be easily borrowed, especially the big gang of Wall Street. Moreover, the protagonist’s daughter saw that the assets generated by the funds had disappeared and were not reflected in the account. This shows that the protagonist actually bought futures personally or in other names to make up for futures losses and misappropriated his company’s funds. , Which made the company's accounts appear to be problematic, and the protagonist manipulated and made false accounts. After a problem occurred, the protagonist personally borrowed funds to make up for the company's holes. 2. The protagonist’s copper mine was purchased by his company, which is also the key reason why competitors are optimistic about his company.
Now the problem is very clear. In fact, the protagonist personally misappropriated the company's funds and then borrowed money to fill the hole. Therefore, it doesn't matter much to the company, so the counterparty said it doesn't matter.
As the protagonist, its assets include futures losses and the company's value. If the two offset (the company's true value), because its copper mine is a successful investment, the rest is still good. After all, copper mine investment brings In order to achieve better returns, there is also the value of the company itself. But now the trouble is coming. Liquidity has problems. The company must be deformed as soon as possible to repay the money to realize the value. Otherwise, not only will the value not be realized, the debt will be collected, and the personal credit will be greatly affected (the United States is not so How old is it, and personal credit is extremely precious in the United States. If it is revealed that there is a problem with its operation, no one will trust him again, no one will ask him to invest again, this is fatal), and the company will be auctioned. (The auction price is nonsense, it is basically impossible to sell at a starting price). Therefore, someone must be found to buy the company. The other party may already know that the protagonist has broken the game here, so he has been reluctant to sign the contract, just to knock on the protagonist’s sticks and lower the price; the protagonist also understands that the other party definitely wants to buy through the test, but he just wants to lower the price, and he cursed son of bitch. He had to sell it to him. He knew very well that the company could not sell its true value. It just wanted to fill the hole, and the remaining point would count as a point, which is better than bankruptcy.
Finally, talk about the protagonist itself. The protagonist is an amazing person. His skill lies in the ability to judge the situation and deal with problems decisively. If he is reluctant to sell the company, it must be a way of bankruptcy. People on Wall Street play money. They have no feelings for specific physical assets. They only have feelings for money. Money is everything. Under such unfavorable circumstances, the company was sold at a decent price. Although it was a low sale, it still saved a trace of dignity.
As for his wife and daughter, they are two people who are insidious, one is not deeply involved in the world, and do not know the dangers of the rivers and lakes and the dangers of doing business. They are not very cold, and their wives are especially bad.
The personal life of the protagonist is indeed a bit messy, but there is only one lover, as a Wall Street person (the financier on Wall Street is simply not a matter, and the protagonist is too restrained), as a rich man, Bibi is some of the domestic **, Still a lot better.
In the end, the question of who made the futures of the Second Middle School, who borrowed the funds, and who made up whose holes are purely personal speculations, and I hope someone can correct me.
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