CVI 0.00% 0.3¢ cvi energy corporation limited

options v heads, page-2

  1. 3,715 Posts.
    Mirouku,

    Options vs heads gives you an idea of what people expect the share to run to. For options to have parity with heads, run through this calculation:

    TP = Target Price
    OS = Option Strike Price = 15 cents
    OP = Current Option Price = 20 cents
    SP = Current Share Price = 24.5 cents

    TP - OS = (OP / SP) x TP

    TP = ((OP / SP) x TP) + OS

    (1 - (OP / SP)) x TP = OS

    TP = OS / (1 - (OP / SP))

    TP = 15 / (1 - (20 / 24.5))

    TP = 81.5 cents

    Cheers!
 
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