The Value of a Call Option Just Prior to Expiration

question 75

Multiple Choice

The value of a call option just prior to expiration is (where V is the underlying asset's market price and X is the option's exercise price)

• A)Max [0, V - X]
• B)Max [0, X F- V]
• C)Min [0, V - X]
• D)Min [0, X - V]
• E)Max [0, V > X]

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