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To: Jeff O'Brien who wrote (11500)	4/3/1999 3:59:00 PM
From: tom pope	Respond to of 12559

>>How could those calls go to 1/16? << Why would 30calls be worth anything, let alone 1/16, if the final value of the stock is 28? >>What do you think would happen to the person who bought those call? << He'd have lost his stake. Just as he would have lost his stake if the stock climbed 10 points but closed below 30 on expiration day.

To: Jeff O'Brien who wrote (11500)	4/3/1999 5:38:00 PM
From: jach	Respond to of 12559

<How could those calls go to 1/16? > I should've said 1/16 is very likely if it is cash deal. It may be 1/8 or 3/16 (no more), the logic was based on that if it was cash deal at 28$, it virtually eliminates the potential for the 30 call option to appreciate even though there is pretty good time premium. <What do you think would happen to the person who bought those call? The stock would climb 8 - 10 points and they would lose out? No way!> Again, you read my reply for that post but did not put any glucose into your brain, "cash deal" is the two words here.