The Lower Bound of a Call Option

question 90

Multiple Choice

The lower bound of a call option:

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

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