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Old 11-21-2005, 01:29 PM
Sniper Sniper is offline
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Join Date: Jun 2005
Posts: 704
Default Re: why are FDG 2008 call options below market price?

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

[/ QUOTE ]

Because the options are very thinly traded, and thus the market maker can try to take advantage of "the fish" by offering to buy back someones option below its true value.

The true value for each of those options is somewhere in between the bid & ask.
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