ramdabom

Cinderella Wrote:
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> The assymetric payoff of options means that you
> would still gain more from favorable price
> movements than you would lose from adverse
> movements even if you're already deep in the
> money.

I was about to make reference to this after neglecting it in my post (and after reading Joey's point), however from what I understand is that the assymetric payoff was always in reference to the sum of values for all options (although it wouldn't matter in the example I provided)...I just used that because I don't remember anywhere in the level 1 material where it stated selling over exercising; I think we're getting ahead of ourselves here.