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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (30)	8/12/2001 5:23:07 PM
From: Thomas Tam	Read Replies (1) \| Respond to of 1064

You might want to correct the time premium on the 5 call as it should be 1.99 and not 2.90. Couldn't see how a more in the money call would have more time premium than a call less in the money. Later

To: Dan Duchardt who wrote (30)	8/13/2001 2:05:02 AM
From: Mathemagician	Read Replies (1) \| Respond to of 1064

There is another trick. You can mix fixed font and regular in the same post... The volatilities are close to what I get, and my machine seems to be OK :)) I also compared the prices to a fair value calculation on my quote server that is now using 94% volatility, and the 7.5 and the 10 are offered at a slight discount. 10.90 for the 5 is above fair value. All this supports your numbers as being about right. I did however notice that the best ask on the 5 is 10.50, with 10.90 being the highest, and at that price all three are in 85% territory LEAP ASK Intrin value Time prem Implied Vol Jan 04 5 $10.90 $8.91 $2.90 100% Jan 04 7.5 $9.30 $6.41 $2.89 83% Jan 04 10 $8.40 $3.91 $4.49 83% It works just like when you want bold or italics, except use PRE instead of B or I. M