1.   If S far less than E the losses incurred on the purchased shares will be offset by the premium received by selling the option.

2.   It would later bring the newly purchased shares back to this country, and use them to cover the short position.

3.   The loss does not evaporate but gets added to the cost basis of the newly purchased shares.

4.   The newly purchased shares were then used as collateral for the loan.

5.   The newly purchased shares were then used as collateral for the loan, Pracha said.

6.   The purchased shares will be paid with internal funds or external borrowings.