Lets say they were trading at 65c, would someone that wants to buy LRV not just buy it at 65c, pay the 30c and get the stock for 95c instead of going to market for $1?
Or lets say they were at 65c, Arbitrage traders would buy LRVO at 65c, and short LRV at $1, exercise it at 30c, paying 95c. Close out the short position at $1. And profit 5c. I believe it is an American call option as well so this can be done any time up to maturity. Hence I believe when LRVO is in the money, ie: LRV > 0.30, then the value of LRVO will be at least (Stock price - 0.30).
But yes, it isnt always an efficient market, especially on a small/micro cap like LRV, but Option theory prevails.
But I think youre right, i think volume will have dried up a bit and the bid-ask on it will be quite wide when it comes 1 day to expiry.
LRVO, page-144
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Last
38.5¢ |
Change
0.010(2.67%) |
Mkt cap ! $122.3M | |||
| Open | High | Low | Value | Volume |
| 38.0¢ | 41.0¢ | 37.5¢ | $1.085M | 2.790M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 52239 | 38.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 39.5¢ | 70044 | 2 |
View Market Depth
| Last trade - 16.10pm 17/10/2024 (20 minute delay) ? |
| LRV (ASX) Chart |