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Re: jessme post# 41695

Tuesday, 09/15/2009 2:32:37 PM

Tuesday, September 15, 2009 2:32:37 PM

Post# of 347009
Have you ever purchased an option of any kind?

What is the difference between the following:

A. I receive 100,000 in salary. I purchase an option to buy 10,000 shares of X at 5.00. The option costs me $25,000. The option expires in one year.

B. I receive $75,000 in salary plus an option to buy 10,000 shares of X at $5.00. The option expires in one year.


The stock is at 4.50 and stays there.

Under which case am I worse off?
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y