From a real options perspective,the value of a call stock option is zero as long as the price of the stock is more than the exercise price.

Question

Quizplus · Accepted Answer

From a real options perspective, the value of a call stock option is not zero as long as the price of the stock is more than the exercise price. The value of the option increases as the stock price rises above the exercise price, allowing the holder to benefit from the option and potentially earn a profit. Thus, the statement is false.

From a Real Options Perspective,the Value of a Call Stock