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Technology Stocks : America On-Line: will it survive ...?
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To: Sam who wrote (8438)3/4/1998 3:38:00 PM
From: J.S.  Read Replies (2) of 13594
 
Sam writes:

"Options expire worthless after a
set period of time (ie 10 yrs.) regardless of what the option price is. Obviously, if
you we're holding onto options that were in the money and the deadline was
looming, you would exercise them!"

This is not true at all. Expiring worthless means your options are
out of the money (or close to it). One is afraid of options expiring
worthless IF one thinks the price of the underlying may go down.
Since AOL has no option series of that magnitude expiring soon, that
is what I assumed you meant.

In any case, there is such a thing as automatic exercise when options
are well in the money. I'm sure AOL would want your money for
its stock. They would force you to exercise them. Even if they
didn't they would not be said to "expire worthless". They just
"expired".

Joe
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