Which One of the Following Describes the Lower Bound of a Call's

question 30

Multiple Choice

Which one of the following describes the lower bound of a call's value?

• A)strike price or zero, whichever is greater
• B)stock price minus the exercise price or zero, whichever is greater
• C)strike price or the stock price, whichever is lower
• D)strike price or zero, whichever is lower
• E)stock price minus the exercise price or zero, whichever is lower

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