Talk:Call option

message: Could someone add a section on how corporate actions (merger, spinoff, etc) affect call options? Mdozturk 19:34, 21 November 2006 (UTC)
thread_title: Request

message: *(if you know the answer, please put it in the article)
Typically, does an investor pay a premium per share, or a set premium to purchase as many shares as he/she desires?  Also, what is the ballpark range for a premium?  AdamBiswanger1 02:01, 9 June 2007 (UTC)
thread_title: Question

message: i believe whoever wrote the Wikipedia articles titled "call option" and "put option" got confused about the two, and mixed the places of K and S in the formulas presented on each page. please can some expert check this? Merton's Nobel Prize winning article written in 1973 gives the formulas with K and S switched!  —Preceding unsigned comment added by 134.10.121.181 (talk) 04:30, 27 September 2007 (UTC)
replies: text: Um, the formula looks OK to me. The payout of a call is indeed the amount that S is greater than K at expiration as stated in the article. Can you be more specific on what you'd like to change? Ronnotel 14:26, 27 September 2007 (UTC)
thread_title: Question regarding S & K

message: Much of this article duplicates material found in Option (finance). I'd like to rewrite this and bring the articles into line with each other. Ideally, this article should just discuss what is unique about calls and leave the majority of the discussion to Option (finance). Any comments? Ronnotel 14:29, 27 September 2007 (UTC)
thread_title: Duplicates material on [[Option (finance)]]

message: To a non-expert like myself, these graphs are useless. Please, label the axes with something. "Money" and "time," or whatever they represent. Right now they're gibberish. Mrwriter  —Preceding comment was added at 00:30, 25 October 2007 (UTC)
thread_title: Graphs

message: I'm only a soon to be engineer, taking my very first economy/management course right now, so I'm sure I've missed something. This is what the article currently reads: "Sumner, however, did not do so well. Sumner did not already own ABC Corp stock, so when Chris exercised the contract Sumner had to buy the stock on the open market, at $6000. Sumner had already earned the $500 premium for the contract, so the total loss for Sumner was $5500". But oughtn't Sumner recieve $5000 when selling the stocks as well? Reducing the loss tenfold (elevenfold actually). This would also make more inuitive sense to me: playing the stock market like this, when someone wins, someone else loses. It's a zero-sum game. Please correct me if I've misunderstood.  —Preceding unsigned comment added by 80.216.205.65 (talk) 18:45, 25 September 2010 (UTC)
thread_title: Question regarding the example

message: This article runs out of steam halfway, as the expert author runs away with himself in his enthusiasm.
Ignoring the esoteric paragraph of mathematical symbols, and just looking at the second example of value, [Example 2 of valuing a stock option]
the explanation states :
"  Today the option is worth $19.45. With a theoretical call premium now of 73 cents. The call premium tends to go down as the option gets closer to the call date. And it goes down as the option prices rises in value relative to the stock price. IE the 19.45 the option is now worth is 30% (19.45/ $64) of the price per PNC shares. In August it was 23% (11.75/$50.65). The lower percentage the option comprises of the stocks price the more upside the investor has, therefore a premium will be paid for it. ", 
but  this is not very clear. Presumably he means 'today with an imaginary price of  say, $64 we can say...the option might be priced at , say, 19.45 and have a call premium of 73 cents.etc'
Perhaps one  of your editors would re-write the paragraph to simplify it . Thank you — Preceding unsigned comment added by Sandkicker10 (talk • contribs) 
:Agree with Sandkicker Statoman71 (talk) 20:31, 27 February 2014 (UTC)
thread_title: Valuing a stock option