Forum Archive Index - January 2000
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[sharechat] SMROA - Strathmore Options
I believe these are 1:1 options and have 18 months to expiry. Therefore
the time value is only 2 cents which makes them cheap in my opinion.
Also Commsoft, SMR's big investment was in Herald today advertising for
staff with a view to a ASX listing within 6 months. Telemedia is a
comparable company with a market value of around $AUD350 million.
Commsoft could surpass this value.
I believe the options are mispriced according to Black and Scholes
Model.
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