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To: Mark Peterson CPA who wrote (5004)2/26/1999 5:39:00 PM
From: HG  Respond to of 19700
 
Thanks. It was pretty heavy..<grin>...but always found the derivatives more interesting than the underlying security...

I merely meant to indicate that Out of Money have higher premiums at any given point in time than do ATM or ITM options (?) - at least that has been my experence. This comes from the higher risk factor. Fundamentals of corporate finance - investors rewards should be proportional to the risks they take.

Price movements would be as per your description...