A call option has an intrinsic value of zero if the option is
A. at the money.
B. out of the money.
C. in the money.
D. at the money and in the money.
E. at the money or out of the money.
E. at the money or out of the money.
Intrinsic value can never be negative; thus it is set equal to zero for out of the money and at the money options.
You might also like to view...
Which of the following statements about international opportunities in marketing is true?
A. International trade is decreasing worldwide. B. Only large firms can engage in international marketing. C. There is no need to consider international opportunities when the domestic market is prosperous. D. A product with slow sales growth in a domestic market may experience faster growth in another country. E. All of these statements about international opportunities in marketing are true.
Liquidity measures indicate the ability of the company to meet its current debt obligations
Indicate whether the statement is true or false
Why is auditing important in a free market society?
a. The public requires auditors to function as divisions of regulatory bodies. b. Auditors detect all errors and fraud perpetrated by company employees. c. It provides reliable information upon which to judge economic performance. d. The auditor is an amiable insurance policy for investors. e. All of the above are true.
If the ratio between current and potential levels of market demand is close to one, what can you infer about the industry's market-penetration index and the growth potential of the firms in the industry?
What will be an ideal response?