Question: Why do options sell at prices higher than their exercise values?

Why do options sell at prices higher than their exercise values?


Step by Step Solution

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The market value of an option is typically higher than its exercise value due to the sp... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

49-B-C-F-S (89).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!