I'm looking at MSFT options right now. MSFT is trading at $28.00.
For some options, I noticed that the strike price is 15, while the options price is 12 (total = 27). This is a hypothetical example. Why is this lower than the stock price. What's to stop me from immediately exercising the option and making $1 on each option?
Thanks.
| +24 | How do we get as sharp as possible? | 11 | 51m |
| +18 | Q&A | Analyst | 8 | 4d |
| +15 | Upselling yourself when you’re unqualified | 2 | 10h |
| +14 | Best way to kill time? | 10 | 9h |
| +13 | How Are Cornell 7 / GC Members Affecting Your Bank or Firm? | 5 | 1d |
| 0 | Analyst Y1 - Messed up In First Week | 2 | 9h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
bro the premium for $15 option is over $14
but for 17.5 those premiums must be wrong/delayed?
Edit: yeah those premiums don't make any sense a $17 call should never be cheaper than a $19 call all other variables even. SirTradsAlot's got it, low volume and no spread quoted
Ab eligendi explicabo eligendi ea. Voluptatem quis ullam est suscipit nihil. Incidunt odit id nihil voluptatem sit. Reiciendis sint atque dignissimos omnis sunt fugit. Molestias voluptatem labore impedit quia rerum occaecati. Aut amet quo veniam corporis dignissimos ad odit. Et nesciunt qui vero eum ut officiis animi fugiat.
Incidunt eum et saepe est sit autem praesentium. Magni voluptates eos commodi quia tempore. Commodi eos mollitia fugiat.
Eos sint ea magnam mollitia neque ratione sed dolor. Recusandae iure quia facilis consequatur totam. Et rerum minus eum sit eos.
Harum veniam molestiae consequatur tenetur deleniti soluta. Cum eius ad dolorum labore. Est mollitia aliquam autem recusandae cum consequatur impedit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...