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+The Intelligent Investor’s Guide to Option Pricing  •  53
+Notice that by moving the strike down from an expected 5 percent chance 
+of success to an expected 20 percent chance of success, we have agreed that we 
+would pay four times the amount to play. What would happen if we lowered the 
+strike to $50 so that the exposure range started at the present price of the stock? 
+Obviously, this at-the-money (ATM) option would be more expensive still:
+5/18/2012
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+5/20/2013 249 499 749 999
+Advanced Building Corp. (ABC)
+Date/Day Count
+Stock Price
+GREEN
+The range of upside exposure we have gained with this option is not only 
+well within the BSM probability cone, but in fact it lies across the dotted line in-
+dicating the “most likely” future stock value as predicted by the BSM. In other 
+words, this option has a bit better than a 50 percent chance of paying off, so it 
+should be proportionally more expensive than either of our previous options.
+The payouts and probabilities I provided earlier are completely made 
+up in order to show the principles underlying the probabilistic pricing of 
+option contracts. However, by looking at an option pricing screen, it is very 
+easy to extrapolate annualized prices associated with each of the probabil-
+ity levels I mentioned—5, 20, and 50 percent.
+The following table lists the relative market prices of call options cor-
+responding to each of the preceding diagrams.
+1 The table also shows the 
+calculation of the call price as a percentage of the present price of the stock 
+($50) as well as the strike–stock price ratio , which shows how far above or 
+below the present stock price a given strike price is.