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To: Chuzzlewit who wrote (153390)	2/9/2000 12:49:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 176387

Nevertheless, if there is time value in the put why not sell the put and the stock simultaneously? Chuzz, sorry but I seem to be missing something in your argument. If transactions costs make it prohibitively costly to sell the option, I don't see how selling the stock fixes that. Let's suppose the theoretical value of the put is 6.75, and the actual spread is 6 3/8 x 7 1/8. Given this assumption, the put holder would do better to exercise the put than sell it. If he exercises, his price for the shares is 47.5. If he sells the put and the shares, he only receives 6 3/8 + 41 = 47 3/8. Isn't he better off to exercise, given my assumption about the spread?