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    Exam 20: An Introduction to Derivative Markets and Securities
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    The Value of a Call Option Just Prior to Expiration
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The Value of a Call Option Just Prior to Expiration

Question 75

Question 75

Multiple Choice

The value of a call option just prior to expiration is (where V is the underlying asset's market price and X is the option's exercise price)


A) Max [0, V - X]
B) Max [0, X F- V]
C) Min [0, V - X]
D) Min [0, X - V]
E) Max [0, V > X]

Correct Answer:

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