Replies to post #38652 on China Growth Stocks

[karins]

CNAM Option Pricing Tenenbaum and Researcher59

Thank you for explanation-- especially the volatility of CGS stocks. CNAM has no options outstanding so one cannot calculate implied volatility from them. I saw that CHGI used a volatility of 19% in their 2009 Annual Financial Statements which is much lower than 50% or 60%. I have not calculated the volatility of CNAM so I really don't know what the CNAM volatility is.

In my experience, after new issues, the stock price usually bounces off the new issue price even with warrants. IMO In the case of CNAM, as the issue price was relatively close to filling a gap, it has gone down further. It will be interesting to see if there is a gap fill.