Is there a simple way to explain how you get to the value of value of $3.50? Other than black scholes etc
Like your explaining it to a 10yr old.
The very simple way that it will make sense for most is the difference between .75 and todays close.
option 1 = $0.71 for free.
$1.46c - $1.25 strike = 0.21 free x 3
71c + 63c = $1.34 for every .75c you spend today
It’s basically like buying a single share today for .75c and getting a guaranteed 178% increase immediately.
Race options thread, page-942
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