The Minimum Value of a Call Option Equals

question 94

Multiple Choice

The minimum value of a call option equals

• A) exercise price - the stock price.
• B) stock price - exercise price.
• C) call premium - (stock price - exercise price).
• D) put premium - (exercise price - stock price).

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Definitions:

Babbage's Engine

Refers to Charles Babbage's Difference Engine and Analytical Engine, early mechanical computers designed in the 19th century.

Vacuum Tubes

Electronic devices that control the flow of electrons through a vacuum, used in early radios, televisions, and computers before the advent of semiconductor devices.

Integrated Circuits

Integrated circuits are microchips that consist of a set of electronic circuits on a small flat piece (or "chip") of semiconductor material, typically silicon, functioning as the core component in a variety of electronic devices.

Transistors

Semiconductor devices used to amplify or switch electronic signals and electrical power, fundamental components of modern electronic devices.