random_walker47

Dreary Wrote:
-------------------------------------------------------
> Well said, nielsendc.
>
> My question above is not related to dividends or
> execise...just a quiz for the heck of it. The
> question restated is:
>
> Let us say the $12.50 strike call for a
> non-dividend paying stock is selling for $1. Can
> you think of a case (real not theoretical) in
> which the next day, the stock is still trading at
> $12 or more, but your call is worthless, with
> still plenty of time before expiration?

There may be a few examples. One obvious one would be if we had zero or close to zero volatility.

Even still, in the context of this thread I don't understand your question. Not that I don't think the mental exercise is valuable, I just feel like I'm missing your point...