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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Bridge Player who wrote (2381)	2/8/2000 1:45:00 PM
From: edamo	Respond to of 8096

bp....not arguing over words...re:" together they are time value"....more of reality beyond the basics this is a very simplistic answer that disu provided the link to...be it cboe, or philadelphia exchange, they are offering basics...or enough to get you into trouble the very same exchanges use the black scholes model for option pricing...if you or disu are familiar with black-scholes model, you would then concede that all is not lumped together as "time value" the formula uses separate and discrete entries for "t"=time remaining until expiration, expressed in a percent of a year, and "v"=volatilty measured by annual standard deviation(aka historical volatility). the only wild card is the incalculable "implied volatility"