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To: Lost in New York who wrote (4003)12/21/1998 11:14:00 PM
From: Ira Player  Read Replies (1) | Respond to of 4969
 
That far in the money, the extrinsic value is very low because of the opportunity cost ("risk free"<gg>) to the buyer and the 1 year loan (and the return generated) for the seller.

The seller makes his 'premium' from the use of the money for a year.

The seller may also be a former buyer that bought the leap when it was much lower.

Ira