Solved

Calculate the Value of a Long Call If the Exercise

Question 93

Multiple Choice

Calculate the value of a long call if the exercise price is $10.00,the premium is $1.50 and the spot price is $8.00,given V = max(S-X,0) - P.

A) -$3.00
B) -$1.50
C) $0.00
D) $0.50

Related Questions

Q88: A short-call party to a call option

Q89: Which of the following best reflects the

Q90: In expectation of increased price stability,an investor

Q91: An investor purchased a call option and

Q92: In the Australian options markets a LEPO

Q94: In the option markets,the option that gives

Q95: Which of the following factors is NOT

Q96: The intrinsic value of an option is:<br>A)

Q97: Discuss a call option writer's risk exposure

Q98: In option language,a 'cap' is a:<br>A) boundary