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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (111812)	3/24/1999 5:29:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Math: If we are dealing with Jan 2001 $85 and the premium is $48, then the required cash is $85-48= $37. So assuming that DELL closes at $85 or higher, the cash liberated in 21 months will be $85 on an investment of $37. Neglecting interest earned in the interim, we have an annualized return of 60.8%, which is the maximum return on the position if held to expiration. But can these numbers be correct? How can the premium be greater than the price of the stock? In essence, this is a riskless position. Have I misread the numbers given me? TTFN, CTC who is very confused