41. The nature of options means that their value can soar or fall far faster than the price of the underlying stock. 42. The publicly traded shares often trade at discounts to the actual value of the underlying stocks. 43. The underlying stocks followed. 44. The value of the competing offers has fluctuated in past weeks with the price of the underlying stocks. 45. The value of those contracts soared today as the price of the underlying stock plummeted. 46. The underlying stock on these options are traded only on the computer system. 47. When a market maker sells calls, he typically buys the underlying stock as insurance against a big price swing in the stock. 48. When the market price of the stock goes above the strike price, the options become profitable, and employees may exercise them, or buy the underlying stock. 49. While options can be held until expiration and converted into stock, most investors simply trade them without owning the underlying stock. 50. Because the future price is locked in, the value of options increase along with the price of the underlying stock. |