comp_sci_kid

Hi EastCoast,
You enter in a put agreement for Royal bank stock which expire in Dec 2011 with X=100

Lets now assume the Royal stock went down to 0 from July to Dec......You are now deep in the money my friend for the put of $100.

Will u wait till December to excersise or u have to do early in July...either way u are selling for 100$ BUT consider the time value of money? Certainly July 100 bucks is worth more than Dec100$. This is the only exception for brother Theta's view lol....

Momentum trader,
Toronto



Edited 1 time(s). Last edit at Wednesday, February 2, 2011 at 02:06PM by Dobenya.