if you go to: www.goodcalculators.com/black-scholes-calculator/type in the inserted fields the black and scholes value of the CPHOD have a value of between 1.2c and 1.8c. so based on that, they are trading at around 80% below their true value. Spot price ( is the current shares price ) 2Strike price - 8time to expiration - 4 ( years ) Volatility - i have used 200% as the stock has been very volatile over the las 4 years especially last 2 years and 1 year risk free interest rate - 3% although this field doesnt have much weight dividend yield - 0 based on the above assumptions - this generates a 1.8c price for the CPHODs making them trading at around a 75% discount. the reason is due to the long life of the options!
CPH Price at posting:
2.0¢ Sentiment: None Disclosure: Held
