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| according to your post she paid 1.25 million dollars to buy 7000 shares of a stock at a strike price $115.00 below the current value. if the stock gains $116 per share in the next year she gains $812,000.00 if the stock falls $116.00 she loses the 1.25million you say she invested in the stock vs just buying the stock for 1million more in cash. the premium seems out of wack with the risk reward to me, of course what the OP forgets is that the price she paid was in a range of 600k to 1.25 mil. | |
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