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list1
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Posts: 827
Joined: July 22nd, 2015, 2:12 pm

Re: How does BS option pricing admits profit?

February 22nd, 2017, 5:28 pm

I'm almost tempted to buy list's books...or is that part of a cunning plot!
I do not think that all subjective details should be put in the book. Details should be discussed before its presentation. Sometimes I see that my point should be corrected or sounds not good. I would say that buying option it is a chance that I would exercise it earlier maturity. Mainly, If at some moment rate of return on option will exceed the option return in case when S ( 90 ) = 105 and probably for the case when S ( 90 ) = 104 too. 
 
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outrun
Posts: 4573
Joined: January 1st, 1970, 12:00 am

Re: How does BS option pricing admits profit?

February 22nd, 2017, 6:34 pm

Take just an option on the book for now?
 
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list1
Topic Author
Posts: 827
Joined: July 22nd, 2015, 2:12 pm

Re: How does BS option pricing admits profit?

February 22nd, 2017, 6:39 pm

Take just an option on the book for now?
I afraid I could not understand the question.
 
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outrun
Posts: 4573
Joined: January 1st, 1970, 12:00 am

Re: How does BS option pricing admits profit?

February 22nd, 2017, 7:00 pm

Take just an option on the book for now?
I afraid I could not understand the question.
Paul is still thinking about buying your book, but with these limited editions he runs the risk of being too late once he's decided to buy it!

To eliminate that risk he could buy and option to buy your book in eg two weeks. That way nobody else can buy it for two weeks and hopefully that will relax him a bit.