And far more ofthe European's package is in bonuses and free shares linked to the performance ofthe company relative to its sector or an index, rather than in options which relate rewards solely to themovementofthe company's shareprice.
Rising levels of options implied volatility on CAT as well as bearish movement in theshareprice will benefit the investor by lifting premium on the puts, while the erosion of time value on the long position will work against him.