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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: john lilly who wrote (12142)	1/4/2000 1:14:00 PM
From: Richard Gibbons	Respond to of 14162

For why a call will usually sell for more than a put when the stock is at the strike, in Options as a Strategic Investment (3rd ed), look at chapter 29, and the section on Conversions and Reversals. Pay particular attention to the carrying cost. (The basic answer is that if this weren't true, you could get a risk-free position that paid interest above the carrying costs.) (Or if you want my explanation, which isn't as detailed, it comes out of the analysis that I discussed in post 11903.) Richard