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To: rkral who wrote (178203)	5/28/2004 2:14:49 PM
From: Elmer Phud	Read Replies (2) \| Respond to of 186894

Ron - For the scenario given, to what extent do you think "market forces" would change the call option price? More than the calculation? Less than the calculation? Significantly so? First let me say that I am not a professional trader, I do make some good money writing options but I do it only for myself. This is only my observation. Market forces define the options price, not the BS model. If people are buying then the price goes up. If people are selling then the price goes down. The BS model gives someone a method of determining if the going price constitutes a reasonable opportunity but the bid and ask are defined by what people are willing to buy or sell at.