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mr Goodwill [35]
3 years ago
6

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock pri

ce at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)
Business
1 answer:
horsena [70]3 years ago
8 0

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

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3 years ago
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Which one of the following regarding the State Disability Insurance (SDI) program is true?
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