Out-of-the money calls: When the stock price falls below the strike price, making the option exercise futile as the shares are more expensive to buy. Note If the price doesn't rise above the strike price, the buyer won't exercise the option. The only loss is the premium. That’s ...
or giving someone else the right to buy the stock. The investor collects the option premium and hopes the option expires worthless (below strike price). This strategy generates additional income for the investor but can
If the stock price is below the strike price at expiration, then the call is “out of the money” and expires worthless. The call seller keeps any premium received for the option. Because of the risk that an option can become worthless, financial advisors generally advise investors to avoid...
1A European stock index call option has a strike price of 1,160 and a time to expiration of 0.25 years. Given a risk-free rate of 4 percent, if the underlying index is trading at 1,200 and has a multiplier of 1, then the lower bound forthe option price is closest to:[单选题...
百度试题 题目A call option has a strike price of 120, and the stock price is 105 at expiration. The expiration day value of the call option is: A. 105. B. 15. C. $0. 相关知识点: 试题来源: 解析 C 略 反馈 收藏
百度试题 题目Consider a call option with a strike price of 32. If the stock price at expiration is 41, the value of the call option is: A. 9. B. 0. C. $41. 相关知识点: 试题来源: 解析 A 略 反馈 收藏
Consider a call option with a strike price of $32. If the stock price at expiration is $41, the value of the call option is:A. $9.B. $0.C. $41. 正确答案:A 分享到: 答案解析: The call has a $9 ($41 − $32) value at expiration, because the holder of the call can ex...
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date.
A European stock index call option has a strike price of 1 160 and a time to expiration of 0.25 years. Given a risk-flee rate of 4 percent, if the underlying index is trading at 1 200 and has a multiplier of 1, the lower bound for the option price is closest to:() A. 28.29. ...
The amount that your call options' strike price is below the current stock price is called its "intrinsic value" because you know it is worth at least that amount. This compares to an out of the money call option which is call option where the strike price of the call is above the ...