Call options can have a positive value at expiration even when the underlying stock is worthless.

Name: Call options can have a positive value at expiration even when the underlying stock is worthless.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

Call options give the holder the right to buy the underlying stock at a specified price before the option expires. If the underlying stock is worthless, the call option would also expire worthless because there would be no value in exercising the option to buy a worthless asset.

Call Options Can Have a Positive Value at Expiration Even