From: Alexander 'Sasha' Chislenko (sasha1@netcom.com)
Date: Fri Mar 27 1998 - 18:37:43 MST
At 05:24 04/24/97 -0500, Scott Badger wrote:
>You might want to consider stock index options. You can bet that the market
>will climb, fall, or either over a certain period by at least a certain
>amount. You would probably want to purchase these options as early as
>possible, but the earlier you buy - the higher the premium. Read up on it.
Why would you want to buy earlier if you have to pay a higher premium?
Actually, the premium grows if the common model of the market stays the same.
If today everybody is sure that the market volatility is going to be limited,
but a week from now everybody starts expecting huge market swings, then the
premium will *increase*.
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Alexander Chislenko <http://www.lucifer.com/~sasha/home.html>
<sasha1@netcom.com> <sasha@lucifer.com> <sasha@media.mit.edu>
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