Why do call options with exercise prices greater than the price of the underlying stock sell for

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Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jan 04, 2013 08:09 AM

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Why do call options with exercise prices greater than the price of the underlying stock sell for

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Due to the speculative nature of the investment the market value of the call option is generally ...View the full answer

Investments

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