Petre 0 Report post Posted June 29 Is there a 'back of the napkin' formula that estimates what a future share price will be using the premiums for calls and puts, with the expiration date being the future date? Thank you. Share this post Link to post Share on other sites
Petre 0 Report post Posted June 29 OOps. estimated future price, per the market makers, using the premiums for calls and puts, with the expiration date being the future date? Share this post Link to post Share on other sites
Jasper 64 Report post Posted June 30 For European options I understand it to be, Stock price = strike price + call price - put price - interest cost of carrying strike price until expiry + dividends expected to be received between now and option expiry. It's slightly different for American options because they can be exercised at any time. Share this post Link to post Share on other sites