Basically, either Greece will implode and leave the Euro and its banks will be insolvent, or it won’t, and the economy will return to being vaguely functional after more bailouts.
The range of outcomes are binary and widely dispersed.
Hence, Greek bank stocks trade like options.
And so just a little bit of good news (like the fact that maybe perhaps there will be a coalition government, even though that’s unlikely) is sending the bank stocks wild.
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