An Option Can Be Priced at Less Than Zero Because

question 8

True/False

An option can be priced at less than zero because it can potentially generate a large profit for its owner.

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Definitions:

Analytical Intelligence

The ability to analyze, evaluate, judge, compare, and contrast information as defined in the triarchic theory of intelligence.

Savant Syndrome

A rare condition where someone with significant mental disabilities demonstrates certain abilities far in excess of average.

Savant Syndrome

A condition where a person with significant mental disabilities demonstrates certain abilities far in excess of average.

Intellectual Disability

A condition of limited mental ability, indicated by an intelligence test score of 70 or below and difficulty adapting to the demands of life. (Formerly referred to as mental retardation.)