19 September 2008
What is the value of a call option on maturity? When the call option owner is said to be at break-even? Can the value of call option be negative?
23 September 2008
Call : Option to buy. You buy call to buy shares. On maturity if your call option allows you to exercise at Rs.200 a share and its market price is Rs.220. You will exercise. If market price is less than Rs.200 it will lapse. The value of call option cannot be negative. At maximum it is break even point.
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