Show TING IN ROUBLE OPTIONS Munitions Concerns Hedging Hedging Hedging ing on War End by Buying Buying Buying Buy Buy- ing Calls on Coins f By Special News Service BOSTON March 17 A A form tonn of ot speculation lation laUon which is just J now attaining some popularity is dealing In foreign exchange e It Is If calculated to satisfy the thc most a avid ald ld speculative penchant Inasmuch Inas Inas- much nueh as U. rl rightly or wrongly people generallY generally gen gen- expect Russia Hussla to recuperate rate fastest from the effects of ot the war the heaviest t s have o naturally lIy been In Russian The theory theer of ot dealing In rouble options la Jg similar to buying calls on stocks locks For or one ont can buy buyan I Ian an option on I roubles cable caLle trans trans- I Ifer f fer r flU BL say UY 32 cents about ahou f t G cents e aboVe the current quotation good until tho end of th the ear Such a transaction tran represents It I excellent hedge against tho the ter- ter of oC the war an and it i IH III understood that concerns having cancellable cancell able ble contracts have teen been en purchasers of ot rouble roubie options on the expectation that their loss If It contracts are cancelled be before before before be- be fore fore the end of or tho the year car b by the ilon lon Ion of hostilities will III b made up by an nn advance athance in roubles rouble I if roubles recover reco before fore the end of the r vear r- r to above e 32 cents the holder of or the she h option may call caW his roubles it at t that tl figure re and sell ll them for tor the profit The position would be bo assuming a Q price of ot 3 cents for roubles roubles sold at nt 35 15 roubles called at 32 cents cents Gross Grots profit L U i cot of oC option Net profit The norma normal price for roubles Is 1 51 5 cent and no on one seriously expects Russian credit to bi Il n again ln at nt normal by bv tb th tb- em end of ot this year It Is Interesting to note that the option on the basis of at a normAl price would show a profit of on an investment of 0 Of or course oune the tho whole prop proposition is a pu pure speculation and bankers who are ar arranging nr- nr ranging the purchases for clients make no bones bonu about mentioning the fact The attractive feature i is evidently the fact that U. U the possible loss la is limited to the cost exist of the tho option while the tho possible profIt prof- prof It Is conjectural and unlimited |