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Technology Stocks : How high will Microsoft fly?
MSFT 486.98-1.4%Nov 19 3:59 PM EST

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To: Jill who wrote (29482)9/15/1999 7:53:00 AM
From: t2  Read Replies (3) of 74651
 
Jill, I am not sure I agree with taxman's statement. It may be theoretically correct but i am not convinced it applies in all situations.

Example:
What if Oracle trades at 40----i would bet that the sept 35 puts would be more expensive than the Sept 45 calls. There would be greater fear that Oracle drops below 35 than it going over 45 by Friday. I guess that if that was the case the stock should not trade at 40. Just a strange disagreement with the "theory".

I may be oversimplifying something that i don't understand in options pricing. Maybe taxman or someone else can tell me the flaw.
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