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No. The value of a call option can never be negative. For example, let's say that one has a call option on FOO with a strike price of $30 and the option expires at the end of the day.
If the underlying price of FOO shares are below $30, the price of the option will be very near $0 (because no one would pay much for the right to pay for an underwater option), but there is still a chance that the stock will go above $30 (no matter how remote).
If the underlying price of FOO shares are at $30, the price of the option will be low, but positive (because there is a chance that the stock will go above $30.
If the underlying price of FOO shares are above $30, the price of the option will be slightly higher than the difference between the strike price and the share price (because there is so little time left for changes; however, there will be some time value as suggested in the examples above).
What else can I help you with?
Is call option and buy option are same or not?
As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."
Call option and put option?
A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.
What is the value of a call option on maturity?
The value of a call option on maturity is equal to its intrinsic value.For instance, a call option with a strike price of $10 on maturity and its underlying stock being at $15 will have a value of $5, which is its intrinsic value.
Explain the difference between a call option and a long position in a futures contract?
The only difference between a long call option and a long futures position is the derivative itself--one of them is an option, the other is a futures contract.
How do you change the price call option and put option?
Once you enter into the contract, you can't change the price.
Is the absolute vale of some thing a negative number?
No.
A negative z score always indicates that the raw score is below the mean?
Vale verga ;)
Is call option and buy option are same or not?
As far as I know there isn't a "buy option," but a call option is an option to buy so I guess you could think of it as a "buy option."
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.
How can one exercise a call option?
To exercise a call option, the option holder can buy the underlying asset at the strike price before the option's expiration date.
What are the differences between option a and option b in terms of their impact on the environment?
Option A has a greater negative impact on the environment compared to Option B.
What are the differences between buying a call and selling a call option?
Buying a call option gives you the right to buy a stock at a specific price, while selling a call option obligates you to sell a stock at a specific price.
Call option and put option?
A call option allows its purchaser to buy ("call in") stocks at a certain price on a certain date--say, 100 shares of Walmart for $50 on November 1. A put option allows its purchaser to sell ("put") stocks on a certain price for a certain date. The seller of the option has to buy them (in a put) or sell them (in a call) if the option is exercised.
What is the homophone of vale?
Veil is a homophone of vale
What is the homonym for vale?
The homonym for vale is veil.
What is the market cap for VALE SA VALE?
As of July 2014, the market cap for VALE S.A. (VALE) is $78,118,827,696.00.
What is the relationship between a regular call option and binary call option and a gap call option?
Regular call options have limited risk and unlimited upside gains while binary call options have limited risk along with limited upside gain.
