Option Valuation Model by Steve Barr
ARTICLE SYNOPSIS ...Option Valuation Model
by Steve Barr
Radix Research Limited
1652 Mount Batten Pl.
Victoria, B.C., Canada V8S 5J9
Product: Stock options evaluation program.
Price: $250 Canadian.
Equipment: IBM PC/XT/AT
Have you ever bought a cheap out-of-the-money call, say for 10 cents and watched it tank, slowly, so
slowly, until it was worth nothing? Sure, the initial logic (you did use logic didn't you?) said that 10 cents
for the contract was ""all"" you could lose. But that turned out to be the entire capital invested: 100% down
the drain. Was that contract so cheap? I started play...