This time, CITIC Pacific just sold the put option. Collect option fees and then buy Australian dollars at a fixed price. But if the Australian dollar depreciates now, CITIC Pacific will buy the Australian dollar at a price higher than the market price. Moreover, the more you fall, the greater the loss! If the Australian dollar rises, it will not be implemented. CITIC Pacific is equivalent to sitting on the option fee.

The two contracts bet that if the Australian dollar exchange rate is higher than 0.87, the company can buy the Australian dollar at a lower price, but when the Australian dollar is lower than 0.87, the company needs to receive the Australian dollar twice as much.

CITIC Pacific's foreign exchange contract is very complicated, involving four currencies: US dollar, Euro, Australian dollar and RMB. The highest possible income from the contract is only about HK$ 430 million, but the amount of foreign currency to be collected exceeds HK$ 50 billion.

The value of the contract purchased by CITIC Pacific far exceeds the actual needs. To sum up the problems of Taifu, first, improper use of tools only solved the risk of Australian dollar appreciation, but did not control the risk of Australian dollar depreciation; Second, it is divorced from the actual needs of using derivatives; The third is the trend of misjudgment.