The Lower Bound of a Call Option's Value

question 47

Multiple Choice

The lower bound of a call option's value:

• 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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