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blasher

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blasher

Re: medge1 post# 69

Saturday, 05/22/2010 10:19:55 PM

Saturday, May 22, 2010 10:19:55 PM

Post# of 81
hhmmm . . you asked the question in a confusing way . . .
so I will answer the best I can in broad terms:

If at expiration (3rd Friday in Sept), the contract would be worth $5.00 - $2.50 = $2.50 = the difference between the stock price and the strike-price

if the underlying stock reached $5.00 sometime before Expiration,
then it would be worth that $5.00 (intrinsic value) PLUS the "time portion" . . .
the risk value in Holding it longer.

Let me know if you have a more specific question.

It's not how you look ...
it's how you see.

the StocksDoc.

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