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Technology Stocks : Compaq

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To: hpeace who wrote (10452)12/8/1997 1:20:00 PM
From: Richie  Read Replies (1) of 97611
 
Steve,

I have an off topic question on options.
Example,

Let's say that one owns the Jan 70 call, and it blows through the roof and goes to 100! (wouldn't that be nice)....now the question....
can one still sell the option, or does someone have to be willing to buy the option. I understand that in order to exercise the option, you need 50% of the cash. If no one is willing to buy the option from you, do you really need all the cash if your only intent was to sell anyway...i guess i mean, just take the profit difference between 100 and 70? I'm not sure if it makes sense, but thanks if you can aswer

RichieH
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