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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: tejek who wrote (141869)1/18/2002 2:20:58 PM
From: TimF  Read Replies (1) | Respond to of 1584600
 
But can you tell ahead of time if the strike price most likely will be either $10, $15, or $20?

In my example it would 100% of the time (barring takeovers or stock splits or certain other occurrences) be all three. Strike price does not mean the price that the stock winds up at. A strike price $10 call would give you the rights to buy shares at $10. That price doesn't end up as anything. Its the same for the $15 and $20 calls and all three strike prices of puts. None of these strike prices change.

The only other price that is important if the options are going to be exercised is the stock price which can
of course be guessed at but not known for certain.

Tim