Question: A call options payoff at maturity time T is C T = max(S T K, 0). Which of the following is NOT true about this
A call options payoff at maturity time T is CT = max(ST K, 0). Which of the following is NOT true about this payoff?
Group of answer choices
The payoff is zero when the stock price at time T is less than or equal to the strike price, i.e., when ST K.
The payoff is negative when the stock price at time T is less than the strike price, i.e., when ST < K.
The payoff is positive when the stock price at time T is greater than the strike price, i.e., when ST > K.
The payoff can never be negative but the premium paid to acquire the option can be lost.
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