The Upper Bound on the Market Value of a Call

question 62

Multiple Choice

The upper bound on the market value of a call option is the __________ and the lower bound is the ___________________.

• A) exercise price; intrinsic value
• B) value of the underlying asset; intrinsic value
• C) exercise price; value of the underlying asset
• D) value of the underlying asset; exercise price
• E) value of the risk-free asset; exercise price

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