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The April bond options settle to the June future not the March whuch is why
t=you were seeing that.
don ewers
----- Original Message -----
From: David Folster <mr_bond@xxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Sunday, March 03, 2002 9:44 PM
Subject: predictive value in option prices?
> List,
>
> Is there predictive value in options prices? The reason I ask is that, I
> would have thought that for options that were "exactly" at-the-money, puts
> and calls would be worth roughly the same. But I went and checked at the
> money bond options, and the april 103 call was valued at 30 while the
april
> 103 put was going for 1'42. Does this mean bonds are heading south?
>
> Also, I checked the at the money quotes for six days ago (roughly 105).
> Again, puts WAY outvalued the calls....and here we are 6 days later and
> $2000 lower in bonds. Any insights in to this?
>
> Thanks,
>
> David
>
> PS someone mentioned a while back that within 2 strikes, bond options were
> fairly liquid, but even the ATM strikes had very spotty charts. How much
> slippage is to be expected?
>
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