Which of the following statements regarding call options is true?
A) The price paid for a call option should reflect,amongst other factors,the probability that the underlying share price will rise above the exercise price.
B) The price paid for a call option should reflect,amongst other factors,the expected future direction of the share price.
C) The price paid for a call option should reflect,amongst other factors,the probability that the underlying share price will equal the exercise price.
D) None of the given options.
Correct Answer:
Verified
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