Boston, MA 02/06/2014 (wallstreetpr) – New Alcoa Inc (NYSE:AA) options begun trading on January 30, 2014 for October 14 expiration with the price of an option a buyer is willing to pay being determined solely by its time value. This are the initial stages of trading for the options which represent a good time frame till expiry for anyone wishing to profit before the expiry. AA has placed a current bid of 82 cents for a put contract at a strike price of $11. This essentially represent an alternative investment opportunity to any investor willing to invest in AA Instead of paying $14.02 per share. The $11 strike price represents approximately 27% discount to the current share price of $14.02.
AA Pays $384 million in fines
Alcoa Inc. (NYSE:AA) had the biggest test which is sure to affect its cash balance having been ordered to pay a total of $384 million in fines for violation of corruption laws by federal authorities. The allegations arose amidst claims that a subsidiary of AA had paid a total of $110 million to a Bahraini official in a bid to influence contract negotiations regarding a major government operated plant. AA has pleaded guilty to the charges according to the department of justice. The settlement package will involve $223 million going to the DOJ while $161 million going to the SEC with the amounts being paid in installments according to AA request.
Alcoa Inc. (NYSE:AA) experienced a drop of 3.33% on Wednesday trading session to close the day at $11.04
