Australia's largest stock trading and investment forum Australia's #1 stock forum

FMG

Click for more information

2.57%

$26.32 fortescue ltd

Thanks ConvGood to see another view with some maths behind it.i...

First 51222 Last

Share
Profile

Follow
Gordy56

663 Posts.

233

23/01/24

12:14

Post #: 72019593
Share
Originally posted by convexity: ↑

I took that from the ASX Margin Estimator Website (what the ASX uses to value options).

Interestingly the options market is implying a different dividend amount.

There is a "law" that call and put prices must abide by (called put/call parity), including dividends that equation looks like this and can it can be used to calculate any value in that equation you don't know... in this case the dividend (D):
This morning for the European $27.51 March strike (X) with the stock (S) at $27.99:
The call (C) price is $1.14/$1.28 so a mid of $1.21; and
The put (P) price is $1.41/$1.58 so a mid of $1.495

The current interest rate for March is 4.32% (r) and t = 58/365... so throwing all of that together gives an implied dividend of 96c.

Interestingly if anyone disagrees with that, you can trade that specific view via certain option combinations (without exposure to the stock price movements etc)!

For those mathematical inclined, I used a continuous compounding rate of interest and D is expressed as a present value so I converted that to a future value which will give a few cents discrepancy to using the formula as presented.

Expand

Thanks Conv
Good to see another view with some maths behind it.
i appeciate your detail and regular posts.
Gordy
FMG Price at posting: $28.01 Sentiment: Buy Disclosure: Held
8 Upvote

1 Great analysis

Reply

There are more pages in this discussion • 889 more messages in this thread...

First 51222 Last

Add FMG (ASX) to my watchlist

(20min delay)
Last $26.32		Change 0.660(2.57%)		Mkt cap ! $81.03B

Open	High	Low	Value	Volume
$25.92	$26.32	$25.83	$102.7M	3.931M

Buyers (Bids)

No.	Vol.	Price($)
2	5850	$26.22

Sellers (Offers)

Price($)	Vol.	No.
$26.32	12010	3

View Market Depth

No.	Vol.	Price($)
2	5850	26.220
1	1000	26.190
1	490	26.150
2	10729	26.140
1	30059	26.120

Price($)	Vol.	No.
26.320	12010	3
26.330	1400	2
26.340	1000	1
26.350	11319	3
26.360	10000	1

Last trade - 16.10pm 06/05/2024 (20 minute delay)


Last $26.19			Change 0.660 ( 1.76 %)
Open	High		Low	Volume
$25.92	$26.29		$25.84	1287651
Last updated 15.59pm 06/05/2024 ?

FMG (ASX) Chart

SPONSORED BY