Which of the following statements is true?
A) At expiration the maximum price of a call is the greater of (Stock Price - Exercise) or 0.
B) At expiration the maximum price of a call is the greater of (Exercise - Stock Price) or 0.
C) At expiration the maximum price of a put is the greater of (Stock Price - Exercise) or 0.
D) At expiration the maximum price of a put is the greater of (Exercise - Stock Price) or 0.
E) Both A and D.
Correct Answer:
Verified
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