The key variable in an options calc is the volatility. Clearly...

The key variable in an options calc is the volatility. Clearly tox is on the move so its volatility is a lot higher than a normal company. Higher volatility will give a higher call option value.

This is the same reason that options for speculative oil companies and the like will be higher than a stable company like Coles Myer.

Hope that helps,

hatless