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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: Steve168 who wrote (1040)10/20/2004 1:00:34 AM
From: LLCF   of 1064
 
<Does this "specialist bidding below intrinsic value" happen every month on expiration day?>

Yes, it can costs a couple of cents for the MM to buy your option, sell the stock against it and excercise over the weekend PLUS whatever risk there is in getting his short off after buying your call. Why would he ever pay 'parity'?

DAK
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