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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (48656)	7/3/2001 9:30:59 AM
From: Ian@SI	Respond to of 70976

Richard, American Style options permit exercise at any time. Yes if you write a Call, covered or uncovered, you can be required, at the optionholder's discretion, to deliver the shares at any time until the contract expires. This is unlikely to happen as long as the time premium remains greater than what the optionholder would realize by early execution. i.e. - if the Calls go deep in the money. Same story for PUTs. You can be required to take the shares at any time up to expiration date. Ian