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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: ccryder who wrote (2261)	3/17/1998 9:19:00 AM
From: Valueman	Read Replies (1) \| Respond to of 10852

For all you option hounds, here are the factors affecting call pricing: 1)Stock Price 2)Exercise Price 3)Volatility(this number can be found for Loral at www.cboe.com--it changes frequently) 4)Interest rates(higher rates, higher time value of money, higher call price) 5)Time to maturity Thus, there has really been no change in "time value" as has been stated here, but interest rates have risen a bit from their lows and volatility has expanded. The calls now have a higher "implied volatility" than Loral used to have.