The Lower Bound of a Call Option

question 8

Multiple Choice

The lower bound of a call option:

• A)can be a negative value regardless of the share or exercise prices.
• B)can be a negative value but only when the exercise price exceeds the share price.
• C)can be a negative value but only when the share price exceeds the exercise price.
• D)must be greater than zero.
• E)can be equal to zero.

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