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Suppose XYZ Is Priced at €125 a Share, Has a Call

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Essay

Suppose XYZ is priced at €125 a share, has a call with an exercise price of €150, and has two months to expiration costs €0.125 per contract.Why do you suppose investors would be willing to purchase a call that is so far out of the money?


Definitions:

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The ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.

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An educational course focusing on the study of shapes, sizes, properties, and spatial relationships of various figures and solids.

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Behavior intended to harm or injure another person either physically or psychologically.

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