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According to exercise value and option price market value of option...

This question belongs to Commerce Financial Management
Financial Management
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According to exercise value and option price, market value of option will be zero when

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Correct Answer: Option C
According to exercise value and option price, market value of option will be zero when stock price is zero. The strike price is defined as the price at which the holder of an options can buy (in the case of a call option) or sell (in the case of a put option) the underlying security when the option is exercised. Hence, strike price is also known as exercise price.
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