Which one of the following statements about the value of a call option at expiration is false?
Question:
Which one of the following statements about the value of a call option at expiration is false?
a. A short position in a call option will result in a loss if the stock price exceeds the exercise pric e.
b. The value of a long position equals zero or the stock price minus the exercise price, whichever is higher.
c. The value of a long position equals zero or the exercise price minus the stock price, whichever is higher.
d. A short position in a call option has a zero value for all stock prices equal to or less than the e xercise pric e.
LO.1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Essentials Of Investments
ISBN: 9780697789945
8th Edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
Question Posted: