The correct answer is: C. stock price is zero.
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The price at which the option can be exercised is called the strike price. The price paid for the option is called the option premium.
The market value of an option is the price at which it would trade in an open market. The market value of an option is determined by a number of factors, including the strike price, the expiration date, the volatility of the underlying asset, and the interest rate.
If the stock price is zero, then the option is worthless. This is because the option holder would have no incentive to exercise the option, since they would not be able to make any money by doing so.
The other options are incorrect because they do not take into account the strike price. If the stock price is at its maximum or minimum, then the option may still have some value, depending on the strike price.