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[sharechat] Options

From:	DARYL <DM2NZ@xtra.co.nz>
Date:	Wed, 19 Jan 2000 19:35:48 +1300

Hi folks,just after some info on options & hoping some one could help me.
Company ABC Ltd's share price is $0.50.Their options are selling at $0.10 with an ex price at $0.60 on 1 March 2000. In lamens terms could someone please explain the following:
1)The share price rockets,goes to $1.50 the options are now at $0.80.They are now $0.20 more expensive than their ex price.What happens if I bought 500,000 options at $0.10 & 1a)500,000 @ $0.80 What happens to that "extra" $0.20????

2)Bad news!! Company dosen't do well,price drifts down from $0.50-$0.30 & the options go from $0.10- $0.05.If I bought 500,000 options at $0.10 & by
1 March (ex date) they're still in the dunnger what happens ????
Any help guys really appreciated!
PS: GO AQL!!!!!!

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