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The Lower Bound of a Call Option's Value

Question 47

Multiple Choice

The lower bound of a call option's value:


A) can be a negative value regardless of the stock or exercise prices.
B) can be a negative value but only when the exercise price exceeds the stock price.
C) can be a negative value but only when the stock price exceeds the exercise price.
D) must be greater than zero.
E) can be equal to zero.

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