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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (38972)	12/10/1998 5:50:00 PM
From: accountclosed	Read Replies (1) of 132070

MB, enlighten me on a mark to market issue. I religiously mark my portfolio to market each night. For conservatism sake, I mark long options to the bid and short options to the ask. Long dated options are pretty wide, so even this immediately adds a distortion that makes it look bad right out of the box. But last often doesn't even exist on long dated options as there may be no volume. Also on stocks, as the specialists close their book for the day they often widen the spread considerably to bring the trading to a controlled close. The same appears to happen with options in many cases, although it is clearly a matter of personal style of the specialist. Anyway, what do you do? What price do you use?

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