A Put Option Premium Has a Lower Bound That Is

question 22

Multiple Choice

A put option premium has a lower bound that is equal to the greater of zero and the difference between the underlying ____ prices. The upper bound of a call option premium is the ____ price.

• A) spot and exercise; exercise
• B) spot and exercise; spot
• C) exercise and spot; exercise
• D) exercise and spot; spot

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Definitions:

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