Looking for attractors in the chaos.
Sunday, October 2, 2011
Highly distorted prices of long term BofA call options
There is something funny going on with the long term out-of-the-money call options on Bank of America. And its not a typical example of the
$1.00 calls for December 2013
were trading (lightly) at $0.08 on Friday. According to Black-Scholes formula, a
theoretical value of such option is $5.12
At the same time,
$1.00 calls for December 2014
, were quoted at $0.36, although there were no transactions.
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