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Old 11-21-2005, 01:20 PM
blendedsuit blendedsuit is offline
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Join Date: Jun 2004
Posts: 94
Default Re: why are FDG 2008 call options below market price?

[ QUOTE ]

FDG is currently trading at 36.20

The current market for FDG 30 calls:
Dec '05 - Bid: 6.30 Ask: 6.90
Jan '06 - Bid: 6.10 Ask: 6.90
Jun '06 - Bid: 6.50 Ask: 7.50
Jan '07 - Bid: 6.50 Ask: 7.40
Jan '08 - Bid: 6.10 Ask: 7.50

These options all trade light volume (if they trade at all on any given day).

[/ QUOTE ]
I don't understand why people are not paying more for calls further in the future.

Why is the bid for Jan '08 less than all the other options which expire sooner???
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