The lower limit on value of a call option is:
A)zero.
B)less than zero.
C)stock price minus exercise price.
D)exercise price.

Name: The lower limit on value of a call option is: A)zero. B)less than zero. C)stock price minus exercise price. D)exercise price.
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Question

Quizplus · Accepted Answer

The lower limit on the value of a call option is zero because an option cannot have a negative value; it would simply not be exercised if it were out of the money, resulting in a value of zero rather than a negative number.

The Lower Limit on Value of a Call Option Is