r/options•
MisterPrime

Difference in Premium less than difference in strike price. Why?

Saw something like AMD $13.00 calls going for about $0.84 premium and $12.50 calls going for $1.20.

Total of the former is $13.84, total of the latter is $13.70.

Why is there such a big difference in the premium? Is there a term for this phenomenon?

Posted Jul 21, 2017, 9:49 PM UTC

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