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Politics : Formerly About Applied Materials
AMAT 319.11+5.7%3:59 PM EST

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To: Michael R who wrote (11088)11/15/1997 1:08:00 AM
From: William  Read Replies (2) of 70976
 
A ten year LEAP. Let's see, an out of the money Jan 00 40 costs $11
on a $33 stock, so thats about a 33% factor. 120 months divided by 26 months is about 4.6 times the 33% gives a bit over 150% of the stock cost. You could buy 2 LEAPS or 300 shares for the same cost, the LEAP could go to zero. (OK, the stock could go to zero also but).
Why would you want to do that?
William
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