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Strategies & Market Trends : Options

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To: Bridge Player who wrote (1352)1/19/2000 11:14:00 PM
From: taxman  Read Replies (1) of 8096
 
just about right. the thing i would add is that on a non dividend paying stock a 100 call is worth more than a 100 dollar put with the stock at 100. the difference is the interest on 100 till expiration. a more complete explanation can be found in some of the options texts and i will try to dig them out.

so let me put it this way.

investor a buys the underlying for 100 and sells a 100 call for 6.

investor b shorts a 100 put for 5 with the underlying at 100.

same expiration date in both cases.

they are in the same boat.

regards
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