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Strategies & Market Trends : Roger's 1997 Short Picks

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To: scope who wrote (8314)12/13/1997 10:43:00 PM
From: Ploni  Read Replies (1) of 9285
 
I'm not talking about the typo EFFI (sic) instead of EFII. What I'm saying is, (a) how can calls for a lower strike price have better prices than the calls for a higher strike price? (b) how can in-the-money calls sell for less than their intrinsic value?

EFII closed at 14 7/8, so I can understand the Jan 15 calls selling for 2 3/8 to 2 3/4. But the Jan 10 calls have an intrinsic value of 4 7/8, plus four weeks of time value. How can they be selling for under 5, let alone under 2? Likewise, the Jan 5 calls have an intrinsic value of 9 7/8.
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