Prior to expiration the intrinsic value of a call option. relationship. 2. A $1 increase in a call option's exercise price would lead to a decrease in the option's value of less than $1. The change in the call price would expiration. d. Call B must be written on the stock with higher volatility. This would explain its higher price. e. Call A must be written on the stock with higher volatility.

Prior to expiration the intrinsic value of a call option

Intrinsic Value

Prior to expiration the intrinsic value of a call option. Since an American option is worth at least as much as a European option, it must also have a positive time value before expiration. Thus, the price of any call option on a non-dividend-paying stock always exceeds its intrinsic value prior to expiration. Non-Dividend-Paying Stocks. This implies that it is never optimal to.

Prior to expiration the intrinsic value of a call option


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