Newbie questions

[Marcel Felgentraeger]

Am Don, 28 Dez 2000 schrieb linas@linas.org:
>Options are real things that have real values, they can be bought and
>sold.   The CBOE trades billions every day. 
>
> So, yes, put them to some account.
...
> No, you would insert the price that they are actually worth today,
> which is probably about 1 eur.  Do *not* enter the strke price
> (50 eur); that would be wrong, espcially since it sounds like they're
> 'under water'.

I have tried that allready and it really worked :) But here comes the next
problem. The day I change the options into stocks I would have to transfer them
from the account to my depot, to keep everything in balance. On the ther hand I
would have to transfer another 49 Eur for each option from my bank account,
since that is the amount of money I have to pay per option the day I change
them. I can find no way to deal with this, since I can not transfer it to my
depot, like when I buy stocks, since than I would have twice the number of
stocks from the change.

I think I got a knot in my mind. Maybe I just make it more difficult than it
really is, but in my line of thinking I can not treat the 49 Eur as an expense,
since I am only shifting the value. 

> you can, of course, type in any price you want, but that is not
> usualy wise.  In the US, the expression is 'counting your chickens before
> they're hatched.'

So you would just keep the options in a seperate account and update their price
after they are really in my depot. But you said they are traded, so they would
have more value than the 1 Eur I have paid, wouldn't they?

Marcel