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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?


To: arizzzona who wrote (4307)6/20/2002 2:37:34 AM
From: Canuck Dave  Read Replies (3) | Respond to of 4409
 
More about option pricing.

I found a site to calculate options using the Black-Scholes formula.

webrisk.net

I fiddled with volatility and interest rate until I got a series of results which agreed with ACTUAL options prices of the issues I priced earlier.

So... for this deal, enter 12 for the strike price, 11.65 for the asset price, .02 for the interest rate (obviously not percent), .6 for the volatility, and 5 for the time.

The result? 6.00, which means BAY probably opens around 6 bucks tomorrow.

Have a good night everyone!!!!

CD