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Hi Marshall:
I think any one of those ovs is good. It gives you some rough idea of the
theoretical value of the options you're following. It doesn't have to be
EXACT.
(Have you ever used weight machines? Try a few times, and you may find the
first time you weigh 125 lb, the second time you weigh 128 lb, and the
third time you weight 122 lbs, all within 125 +/- 5 lbs, with the same
weight machine. Or any blood pressure equipment for your blood pressure.
Different settings will yield slightly different results. But the
important thing is <in general> you want your blood pressure to be within
130/89 (or some other combination) range.)
Rough idea is good for me. As I said, option pricing is only one of the
important elements I'm looking into.
There's no way I know whether the software gives very accurate figures.
Just like there's no way whether the bus you're travelling in will not
crash when you're inside it. However, the probability of the software
being faulty or the bus crashing depends in general on everyday statistics
and in particular on your personal experience.
I would say I have used Option Master for the last 5 years or so and I've
been using buses and subway trains for the last 30+ years and I find them
all pretty good....
That, of course, is not very scientific or accurate, but that will do for
me...
Regards,
Wong
ps: Have you noticed this? It seems I get the same post twice in most cases.
========================
At 12:39 PM 11/8/00 -0800, Liu, Marshall wrote:
>I checked out the URL you posted and remembered that the other program was
>from Mantic (Option Laboratory).
>It's amazing how Win 3.11 software is still around. In any case, I've used
>OL before and found it useful.
>
>How do you know if an option is cheap or rich ? I think that the pricing
>differences between you and the broker can be attributed to different
>assumptions. One man's overpriced option maybe another man's bargain.
>
>Thanks,
>Marshall M. Liu
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