The following is part of a typical list as published in the daily press of option prices quoted on the London Stock Exchange.
bargain carried over, and as the stock has risen there will probably be a number of investors for the rise who are desirous of not taking up the smock they have purchased, but wish to carry over their bargains, and have to pay interest for so doing. Our "protected bear," therefore, so far from having to pay for the privilege of not delivering the stock he has sold, receives payment for not doing so. If within the next few days or weeks Great Western Ordinary falls a point or more, he can repurchase the stock he has sold (close his "bear") and is in the position where he started, with part of his option still to run. In a fluctuating market this process might be repeated several times during the course of the option, making it possible for the holder to realize several profits from the variations in price.
All sorts of combinations of this nature are possible with op tions, and there are a few men in London, almost invariably foreigners, who have the reputation of being exceptionally clever in this class of dealing, and of making large profits out of it.
The brokerage on options is exactly the same as if the actual stock were purchased.
Options as described above should not be confused with Option Certificates which are quoted in the ordinary sections of the Stock Exchange lists. A company will sometimes issue certifi.. cates conferring upon the holder the right to take up shares at a certain price within a certain period, and these option certificates are dealt in just as though they were shares. A case in point is that of Consolidated Diamond Mines of South West Africa which in the year 1925 induced holders of its 8% debenture stock to consent to a reduction in the rate of interest to 61%, and as compensation gave them option certificates carrying the right up to Oct. I, 1929 of obtaining at 20 shillings zoo fully-paid LI shares for each L 1 oo bond. (A. E. DA.)