A call can never be worth less than _____ nor worth more than _____.
A) The exercise price; the stock price.
B) The stock price; the exercise price.
C) Zero; the stock price.
D) zero; the exercise price
E) Its issue value; the exercise price.

Question

Quizplus · Accepted Answer

A call option can never be worth less than zero because an option's value cannot be negative; it simply becomes worthless if it's out of the money. Its value can go up to the stock price because, in theory, if the exercise price were zero, the value of the call would be equal to the stock price.

A Call Can Never Be Worth Less Than _____ nor Worth