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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: GVTucker who wrote (178196)5/28/2004 9:26:55 AM
From: rkral  Read Replies (2) | Respond to of 186894
 
GVTucker, re "To the extent that higher inflation translates into higher interest rates, calls will be priced higher."

For high-volatility (~50%) stocks like INTC, I think the impact might be surprisingly small to many.

For an interest rate change from 4% to 8%, a 3-yr ATM call only increases from 37.3% to 41.4% of the stock price -- based on CBOE's calculator. cboe.com

Ron