IVZ Share Price, page-5071

Just a general gross error logic check tells me that 18c is a bit high. Why would you pay 18c for an oppie now, that you then have to add another 40c to later... when you could just buy the whole thing for 20c now?

I would suggest your 300% volatility variable is a bit high. My calculation of Annualised Volatility comes in at 85% which in itself seems high but is caused by days like today, which we've had a few of over the last 12 months.

That being said, I was still surprised to see that once plugged into a Black Scholes calculator, we still ended up with an Option Price as high as 9c (using a 20c spot).

I'm guessing this is caused by the VERY VERY GENEROUS 5yr Option Term.

However, this is all very academic because, as Jakspara has said numerous times, the options are unlisted so they are worth nothing theoretically until they are in the money, unless you can find someone to trade them with you off-market. It is just a valuation that an insto may have applied when looking at the placement... in which case they might have used the 23c placement price... giving their valuation at the time as being 11c.

Cheers.