The 50-strike call on a stock is trading at $13 and a 60-strike call on the same stock with the same maturity is trading at $4. The minimum price of the 100-strike call is
A) $0
B) $1
C) $2
D) $3

Name: The 50-strike call on a stock is trading at $13 and a 60-strike call on the same stock with the same maturity is trading at $4. The minimum price of the 100-strike call is A) $0 B) $1 C) $2 D) $3
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Question

Quizplus · Accepted Answer

The minimum price of a call option is $0, as options cannot have a negative value.

The 50-Strike Call on a Stock Is Trading at $13