Hi guys ,
Just doing some calcs on the WPIOA for a potential entry .
Current
WPI underlying price = .027
WPIOA- .08
No intrinsic value till .05
So what would be WPIOA price when the underlying is at 5 cents ? .015?
So I can assume WPIOA is currently trading at a high premium .
However IF WPI gets to 10 cents ,is the following correct :
WPIOA = .05 (intrinsic value ) plus .015( option premium) = .065 ?