[amp_mcq option1=”greater than zero” option2=”equal to zero” option3=”lesser than zero” option4=”equal to one” correct=”option2″]<\/p>\n
The correct answer is B. equal to zero.<\/p>\n
An out-of-the-money option is an option whose strike price is higher than the current market price of the underlying asset. In this case, the option holder has no incentive to exercise the option, as they would be buying the underlying asset at a higher price than it is currently worth. Therefore, the market value of an out-of-the-money option is zero.<\/p>\n
Option A is incorrect because the market value of an out-of-the-money option is never greater than zero. Option C is incorrect because the market value of an out-of-the-money option is never less than zero. Option D is incorrect because the market value of an out-of-the-money option is never equal to one.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”greater than zero” option2=”equal to zero” option3=”lesser than zero” option4=”equal to one” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-57884","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n