Multiple Choice
You own a September put on CBA Corp.with an exercise price of $80.CBA stock currently trades at $80 and the put at $5.Which of the following is definitely true?
A) The option will continue to gain value until its September expiration.
B) The owner should exercise now in order to avoid further losses.
C) Decreases in the CBA stock price will be translated directly into additional option value.
D) $20 is the maximum value for this option.
Correct Answer:
Verified
Correct Answer:
Verified
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