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Strategies & Market Trends : The picks
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To: Cory Edelbrock who wrote (5033)2/14/1997 8:58:00 AM
From: Patrick Slevin   of 6124
 
Somehow we have our wires crossed. We were speaking of premium, as I recall. If an option is out of the money, the only value it has is time value.

i.e., if IOM was $1, 0r $19.75--A $20 call's only value is a function of time.

if IOM was $21, The option value would be $1...plus the time value.
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