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To: wlheatmoon who wrote (21824)2/26/1999 6:10:00 AM
From: accountclosed  Read Replies (1) | Respond to of 86076
 
you get the stock at that price if someone exercises. but when the stock is at 20,000 they aren't going to sell it to you for 65. they have the option of selling it to you, not the obligation.



To: wlheatmoon who wrote (21824)2/26/1999 6:28:00 AM
From: accountclosed  Read Replies (1) | Respond to of 86076
 
I didn't answer the "why do you have to keep money in the account..." because the price might plummet and the brokerage firm needs to be sure that they aren't stuck buying a stock at a price higher than they can get in the market.