The Value of a Put Option at Expiration Equals the

question 58

Multiple Choice

The value of a put option at expiration equals the

• A)market price of the share minus the exercise price.
• B)higher of the exercise price minus market price of the share and zero.
• C)exercise price.
• D)share price.

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Definitions:

Multiplication

A mathematical operation that signifies combining or adding a number to itself a certain number of times.

Exponentiation

An arithmetical process that uses two numbers, known as the base and the exponent, in which the base is elevated to the power indicated by the exponent.

Multiplication

A mathematical operation that calculates the total of one number added to itself a specified number of times.

Equivalent Fraction

Fractions that, although they have different numerators and denominators, represent the same part of a whole.