Post #4344 by mungofitch on the Berkshire Hathaway board

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- Manlobbi

Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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No. of Recommendations: 10

An example:
The Jan'26 $190 call would cost about $169, while the stock is $331.71
331.71 - 169 = 162.71 the amount "borrowed" to control a share
To exercise the call (at expiration) would cost $190. So 162.71 is borrowed and 190.00 is repaid, approximately 27 months from now.
(190.00 / 162.71)^(12/27) = 1.071 The implied annual interest rate is 7.1%

I want to compliment you on the succinct and comprehensible summary.
I can never say it with two words when I could explicate by utilizing a plethora!

Jim

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