Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 207.30

-0.9%

3:26 PM EST

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To: TMF who wrote (28093)	12/17/1997 10:10:00 PM
From: David Lawrence	Read Replies (2) of 61433

>>even factoring a conversion of .60 at yesterday's price of 27 1/2 the jan 25 should have been at least 1.50 without any premium. am I missing something here. Tim, you're not looking at it correctly. Contract is CXUAE, which are converted Cascade options. The underlying security is 70 Ascend shares. The strike price is $25 (Cascade). Ascend closed today at 24-3/4. The cost to exercise your contract is (100 x 25) or $2500.00 The intrinsic value of your contract is (70 x 24.75) or $1732.50 ------- With no time value, the contract is out of the money by $ 767.50 Put another way, and forgetting for the moment any time value, ASND would have to trade for $35.71 for the contract's intrinsic value to be equal to it's exercise cost. Bottom line: Kiss 'em off, unless you're the writer of the calls. Hope that helps.

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