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To: rkral who wrote (1663)1/25/2000 1:14:00 AM
From: Theophile  Read Replies (1) | Respond to of 8096
 
Ron, I appreciate your response. The question is not one of reading the book, but questioning the concept of non-negative intrinsic value.

Just because someone defines something does not make it real. I was only pointing out for those wishing to model a more accurate representation of actual value for time, permitting negative intrinsic value would allow this.

>You cannot find anyone to pay you to accept the right to exercise a call option (out of the money, you meant?), can you?<
Well no, because the intrinsic value would be negative it would not get exercised, is my point. If it were only 0.00 then it would not cost anything to exercise it. Since it would cost to exercise, it is negative.

OK, this will probably not do much for our trading skills, but I do appreciate your response, and the point is probably worn dull by now....thanks again. I am probably just picking on something that is obvious and making it difficult.
Martin Thomas