Thread: Call Options?
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Old 08-02-2007, 05:47 PM
ActionDavidK ActionDavidK is offline
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Join Date: Aug 2006
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Default Re: Call Options?

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in actuality, it doesn't make sense in most instances to ever exercise the option though (barring dividend payments) since arbitrage makes sure that the prices of all things concerned are close enough that selling the option is a dominating strategy (better than exercising).

Barron

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Does this mean that the premium isn't a stardard 15- 20%? It's a variable based on how the investment is expected to do? Is there anything like shorting but with options?
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