zeno wrote:Hie,
I am new in options trading, can you explain me some options that have unusual price, I couldnt find why they differ from other options. for example, stock DRL has call options which have price 0.05-0.10 max for every strike price which are below real closing price of the stock.another one, MO call option ZKMAL 60$ strike jan. 2009 premium 17.30$ while actual price for stock is 18.07$, according to what I learnt premium should be close to zero as strike price goes higher than actual price. I would be glad if someone replies that will help me very much...
thanks!
zeno, you got me a little confused--- it looks like you multiplied the MO call price by 100 to show the "actual" price you pay, but you didn't do the same for DRL, which would be $5-10... for example, there are many contracts for different stocks that often cost 'way more than the stock price.... the price you see listed must always be multiplied by 100 to get the "actual" true cost of what you pay per contract...
p.s.-- if you have other questions, i need to know if you're trading usa options or european-style options (but i can't help you much with the euro-style options)
