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Can a stock price be zero or negative?

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Hugh Luettgen

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4y ago

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Q: Can a stock price be zero or negative?
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What is the value of a call option in maturity?

The value of an option at expiry is the difference between the contractual Strike Price and the asset for which you have the call's price at expiry, so long as this number is positive. Should the value be negative, it is bound by zero. This amount is referred to as the Intrinsic Value. For example, if you own a call option on a stock with Strike at $100. Should the final stock price be $120, then your option is worth $20. Should the final stock price be anything less than $100, say $80, then your option is worth $0.


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How are integers used in the stock market?

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What does change mean in a stock listing in the newspaper?

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