An option buyer must exercise the option on or before the expiration date.
The minimum value of an option is zero.
An option to sell an asset is referred to as a call, whereas an option to buy an asset is called a put.
In the two state option pricing model, which of the following does not influence the option price?
The cost of carry includes all of the following except
A call option in which the stock price is higher than the exercise price is said to be
The price paid for the option contract is referred to as the
If an investor wants to acquire the right to buy or sell an asset, but not the obligation to do it, the best instrument is an option rather than a futures contract.
Investors buy call options because they expect the price of the underlying stock to increase before the expiration of the option.
A put option is in the money if the current market price is above the strike price.