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Business, 19.12.2019 22:31 keniaguevara32

You wrote a $40 call option on a stock that has a market price of $43. which one of the following statements must be correct if the option expires three months from now?

a. your option currently has zero intrinsic value.
b. your option currently has a negative payoff.
c. you have the right to purchase shares at $40 a share.
d. your option payoff will increase if the market price of the stock increases.
e. if the market price remains stable, you will make the decision to exercise this option prior to expiration.

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You wrote a $40 call option on a stock that has a market price of $43. which one of the following st...
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