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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (15)7/8/2005 11:41:33 AM
From: Tech Master  Respond to of 60
 
I consider it a stock alternative!



To: Moominoid who wrote (15)7/18/2005 10:29:51 AM
From: VLD3  Respond to of 60
 
IMHO that's a good way to approach the pricing - since you would never convert until the benefits outweigh the cost (the strike price) - BUT, you get to pick the price at which you are willing to convert when you open the position.

Interesting part is that with splits (or dividend increases), conversion is assured as the NPV of the strike price goes to zero not matter how long-lived the option is as long as those two events continue (or are expected to continue).


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