The Value of a Put Option at Expiration Is

question 65

Multiple Choice

The value of a put option at expiration is:

• 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) the exercise price
• D) none of the above

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Definitions:

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

MIGA

The Multilateral Investment Guarantee Agency, part of the World Bank Group, that offers political risk insurance to companies investing in developing countries.

Dumping

The practice of a company selling a product in a foreign market at a price lower than its market cost or below the production cost, often to increase market share or drive out competition.

Multilateral Investment Guarantee Agency

An international financial institution that offers political risk insurance and credit enhancement to investors and lenders to encourage investment in developing countries.