Originally Posted by
tranmerechris
Can you explain why there is both a call and put on the shares at the same time? How does that work?
Sir Bishop has a put option, which means he has the right to sell his stake to LH at a pre-agreed price. It seems from the S&P analysis that bmi appears to be valued significantly higher than this pre-agreed price, so it is unlikely that Sir Bishop will exercise this option (as he would probably get a better price somewhere else).
Lufthansa has a call option, which means that they have the right to buy bmi at a pre-agreed price.