Tech Stock Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: David Weis who wrote (19247)	8/12/1997 6:04:00 PM
From: Nemer	of 58727

American and European style options--- David, American style options can be exercised at any time from purchase to expiration. As a rule they are not due to the "time" premium which would be forfieted should they be exercised before the due date. Only the inherent value of the difference in equity price and stike price would come into play and the "time" value would be discarded. Therefore it normally is not standard practice to exercise before expiration. On the other hand, European style can only be exercised at the date of expiration. While this subtle difference seems small, get Lisa to tell you the tale of her "assuming" that the only thing necessary would be to pay the difference. As I recall there were harsh words exchanged along with a significant amount of money to handle only a small difference in strike and selling prices. Her horror tale happened exactally at ex date but it could/would have been the same if it had been days earlier with an American style option. I'm sure she will be happy to regale us with the re tell of that story now that time has dimmed the unpleasantness some. ggggg Regards-----Nemer.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next