who's laughing now, page-32

BB, in short (leaving out volatility and interest rates etc):

Option value= Intrinsic value + Time value

Intrinsic val. = SP- strike price

ie 22.5c- 35c= -12.5c

So, the question is what is fair Time val...

As per offer at 3c, buyer will pay:

Time value= 3c - (-12.5c)
= 15.5c

That's very optimistic, IMO. The 8-10c trading price I mentioned reflects the sheer optimism (read "risk appetite") of NKP investors, not what I think they're worth).