Multiple Choice
A stock is currently selling for $70 per share and its call option has a $90 exercise price.What is the lower limit on the value of the call option?
A) ($20)
B) 0
C) $10
D) $20 Lower limit on value of call option = max [0,(stock price - exercise price) ]
= max [0,(70 - 90) ]
Correct Answer:
Verified
Correct Answer:
Verified
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