I'm hoping someone can explain this as I'm a little confused. It...

I'm hoping someone can explain this as I'm a little confused. It seems VPE have just entered an options underwriting agreement with RBS for the taking up of unexercised in-the-money options (25c).

What gets to me is that VPE are paying 2.75% or around 350k for this facility. This seems crazy as RBS are essentially getting paid to take and exercise well into the money options. Where is the risk? If anything RBS should pay a fee for the privilege of getting access to in the money options.

I must be missing something. Am I??