The value of a call option just prior to expiration is (where S is the underlying asset's market price and X is the option's exercise price) max $[0, S - X]$ max $[0, X - S]$ min $[0, S - X]$ min $[0, X - S]$ max $[0, S > X]$
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Step 1: A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (the exercise price, X) on or before a certain date (the expiration date). Show more…
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