What is the value of an option if the stock price is zero? What if the stock

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What is the value of an option if the stock price is zero? What if the stock price is extremely high (relative to the strike price)?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:43 AM

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What is the value of an option if the stock price is zero? What if the stock

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If the stock price is zero then there is no possibility that the stock will have positive value T...View the full answer

Fundamentals of corporate finance

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