C₁ = (S₁- E) if (S₁- E) 0 identifies the value of a call option at expiration.

Name: C 1 = (S 1 - E) if (S 1 - E) > 0 identifies the value of a call option at expiration.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

C₁ = (S₁- E) if (S₁- E) > 0 identifies the value of a call option at expiration.

Quizplus · Accepted Answer

The formula C₁ = (S₁ - E) if (S₁ - E) > 0 represents the payoff of a call option at expiration, where S₁ is the stock price at expiration and E is the exercise price. If the stock price is greater than the exercise price, the payoff is the difference; otherwise, the payoff is zero.

C1 = (S1- E) If (S1- E) > 0 Identifies

C₁ = (S₁- E) If (S₁- E) > 0 Identifies