Under Which Condition Does a Call Option Approach Its Upper

question 83

Multiple Choice

Under which condition does a call option approach its upper bound?

• A) When the stock price is far above the strike price
• B) When the stock price is closest to the strike price
• C) When the stock price is approaching zero
• D) When the option is approaching its expiration time

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Definitions:

Simplify

To make something easier to understand or to reduce to a simpler form.

Canadian Dollar

The official currency of Canada, represented by the symbol "$" or the code "CAD".

U.S. Dollar

The official currency of the United States, widely used for international transactions and as a reserve currency.

Collect Like Terms

Combining algebraic terms with the same variable factors into a single term by adding or subtracting their coefficients.