SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?


To: Ed Ajootian who wrote (1347)10/29/1998 7:47:00 PM
From: Biomaven  Read Replies (1) | Respond to of 10280
 
Ed,

A 27 month (should it be 26 months - when do LEAPS expire?) call option at 70 has a Black-Scholes value of $22.80 at the current high volatility of 58%, using a risk-free interest rate of 4.5% and the current stock price of $65.50. The 65's are valued at $24.43. It might make sense to see if the volatility trends down some before buying them.

Peter