What is the deal with the Dec call options in this thing?, they are terribly undervalued. FMV for the dec 80 calls is 2.29 yet the inside is 1.25, exactly where it was when MO was at 71.50 last week. Anyone know what's going on? Ross
FMV is subject based on each party's inputs (i.e., volatility, dividends, interest rates, etc.) One party can say that the FMV of an option is 1.00 while another one can say that it is 3.00.