Solved

What Is the Reason for an Investor to Pay for a Zero

Question 36

Multiple Choice

What is the reason for an investor to pay for a zero intrinsic value option?


A) there is always a chance that the spot rate will move before expiration putting the option in the money
B) there is always a chance that the strike price for options with different maturities will increase
C) investors are typically not investing in zero intrinsic value options
D) the premiums for zero intrinsic value options are very small

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions