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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Tommaso who wrote (133945)11/12/2001 8:41:45 AM
From: smolejv@gmx.net  Read Replies (2) of 436258
 
European-style options are cheaper, because the right-to-exercise (as in American-style) is not given. OTH their intrinsic value is very much calculated the usual ("Nobel-prize-winning") way, it's just different math. IOW the word "cheaper" sucks in this context, because apples are no pears.

In my 5 years of OS trades I never exercised, so American vs European is more of an interest to the issuer than to his clients. And re T-bill play - market makers for these instruments read newspapers and Bloomberg as well, so the prices should exhibit a nice bump by now.

dj
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