Question
Which of the following statements about long European call options on stocks is NOT correct? a. The long call option holder wishes for the underlying
Which of the following statements about long European call options on stocks is NOT correct?
a.
The long call option holder wishes for the underlying stock price S to be less volatile.
b.
The option value can not be higher than ST.
c.
The option payoff at maturity is max(ST K, 0).
d.
The option is out-of-the-money when the stock price is higher than the strike: ST < K
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Public Finance Lessons From The Past And Effects On The Future
Authors: Miguel-Angel Galindo Martin
1st Edition
1629481491, 978-1629481494
