On March 30 you are holding a call option on a stock (exercise price of $60),which will expire on March 31.The closing price of the stock on March 30 is $59.What is the value of your call option?
A) $1
B) - $1
C) Very little
D) Zero

Question

Quizplus · Accepted Answer

The call option is out of the money since the stock price is below the exercise price, so its value is very little, close to zero, but not exactly zero due to the possibility of the stock price rising above $60 before expiration.

On March 30 You Are Holding a Call Option on a Stock