If stock market price is higher than strike price so call option____________?
Correct answer: C. Price will be higher
- A. Price will be lower
- B. Rate will be higher
- C. Price will be higher
- D. Rate will be lower
Explanation
A call option becomes in the money when the stock price rises above the strike price, increasing its intrinsic value and normally its market price. The option’s price, not merely its rate, is the relevant measure here.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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