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In Klingsor's original example of buying one contract (1 option contract is to buy 100 shares) to purchase Jan 06 $30 Call Option at $165. The $1.65 (now $1.70) is the per share price.

Should the share price go up to $30 in the next 6 months it is quite possible that you could sell your call options for as much as double the purchase price. This is because of the leverage of options. However one thing to be aware of is the value of an option decays with time. For example the Jan 05 $30 are just $0.40 whilst Jan 06 $30 is at $1.70 which would indicate a time value of something near $1.30 for the extra year. What this means is that if FDP shares are the same price this time next year you can expect your Call options to drop by somewhere close to this amount all other things being equal. However it is also conceivable that even if the stock price reached $30 by this time next year the call options may be no higher in price (note Jan 05 $25 options are just $1.70 at the moment - $25 being close to the current share price) http://quote.cboe.com/QuoteTable.asp?TICKER=FDP&ALL=2

So a purchase is a bet that the stock price will increase & the sooner the better so that we don't lose the time value of the option.

FWIW I would not dabble in FDP options.

By far the best description of how options work is to be found in the CBOE Learning Center http://www.cboe.com/LearnCenter/Basics.asp

Best Regards
Philip
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