On December 19th 2008 Gazeta Giełdy Parkiet published an article “Does the negative valuation of options aggregate to PLN 10-11 billion?”. The excerpt from the article is presented below:

Companies which entered into unfavourable options should not wait passively, say experts from Fidea Corporate Finance, a company offering investment banking services. They notice that Zloty has been weakening recently, inter alia due to unwinding of open option positions ahead of the financial year end. This leads to further deepening of companies’ losses.

Some firms will not be able to top up margins required by banks which can result in loss of liquidity. According to Marek Dojnow, Managing Partner at FIDEA Corporate Finance, companies should in the first step limit the potential of further losses by negotiating with banks and possibly adjusting delivery dates of contracts or by the optimal choice of a financial instrument eliminating currency risk.

The whole content of the article (in Polish) is available on Parkiet website.