- 18 - commodities. At trial, petitioner was unable to provide signed copies of these documents and testified that he did not recall signing either of the documents. The $35,000 management fee incurred by petitioner on December 1, 1980 (see above), was for FAX's services. Short testified that he never investigated FAX because he felt that FAX was just part of Hunter and that the $35,000 fee was just being paid to Hunter. Through Hunter, petitioner established two spreads on December 1, 1980. The first was a simple bear spread consisting of a long position of 30 contracts of October 1981 100-ounce gold at a price of $723.80 per ounce and a matching short position of 30 contracts of February 1982 gold at $762. The second position was an imperfect butterfly spread. The first wing consisted of 70 contracts of April 1982 gold bought at $785.10. The body was 145 short June 1982 gold, of which 70 contracts were sold at $804.50 on COMEX and 75 contracts at $803.50 on IMM. The second wing was comprised of 75 contracts of September 1982 gold bought on IMM at $834. The slight imperfection in the butterfly occurred because there were only 2 months between the first wing and the body, whereas there were 3 months between the second wing and the body; and because the June/September part of the spread consisted of 75 contracts, whereas the April/June part consisted of 70 contracts.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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