Re: why are FDG 2008 call options below market price?
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If the strike=$30 and the strike=$60 options were issued on the same date, Black-Scholes would obviously value the $30 strike option higher (as would all option pricing formulas).
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I thought that was exactly his point. They had the same expiration (I don't see how the date of issue matters, but of course expiration does), but the $60s were higher, which prompted his remark of "insane."
At any rate, it seems that neither you nor I have all the facts Charlie had when he made his comment, but I tend to give Charlie (who is much more of a genius and a billionaire than I am) the benefit of the doubt.
-web
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