Which one of the following statements about the value of a call option at expiration is false?

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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.

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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