At expiration a call option will have no value if the stock price is less than exercise price.

Name: At expiration a call option will have no value if the stock price is less than exercise price.
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Question

Quizplus · Accepted Answer

A call option gives the holder the right to buy the underlying stock at the exercise price, but it only makes sense to exercise the option if the stock price is higher than the exercise price. Therefore, if the stock price is less than the exercise price at expiration, the option will have no value.

At Expiration a Call Option Will Have No Value If