The maximum value of a call option is equal to the:
A)strike price minus the initial cost of the option.
B)exercise price plus the price of the underlying stock.
C)strike price.
D)price of the underlying stock.
E)purchase price.

Question

Quizplus · Accepted Answer

The maximum value of a call option is theoretically equal to the price of the underlying stock, as there is no upper limit to how high a stock price can go.

The Maximum Value of a Call Option Is Equal to The