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To: Tom K who wrote (23356)3/25/1998 12:19:00 PM
From: Andreas  Read Replies (2) | Respond to of 97611
 
Tha;nks for the response. However don't you mean if the option price is greater than the stock price less the strike price? It is only under that scenario that there is time premium in the option. Under your scenario consider the following: Strike price $25; Stock Price $26; option $1.00. Stock price plus option price is greater than strike price, anbd will result in stock being called at expiration.