DVMT January options

Discussion in 'Options' started by ilhomsher, Nov 21, 2018.

  1. ilhomsher

    ilhomsher

    Hi everyone,
    DVMT is being acquired by Dell for cash and stock and I see some interesting option prices for DVMT. January and later months' put options are very expensive compared to calls. Such situation can be if 1) if OCC decides it is only stock exchange and 2) market thinks new DEll stock is overvalued.
    But it is cash and stock and if you subtract 70$ cash from 100 strike put you get 30$ for stock value. And if you further subtract put premium of 22$ you get 8$ value for Dell stock component. But 103$ stock value of DVMT assumes that Dell stock component is about 33$.
    Can anyone tell if I am missing something?
    Thank you