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What is the value of a call on the expiration date, if on that date the price of the stock is Rs.25 and the exercise price is Rs.26?

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Question:

What is the value of a call on the expiration date, if on that date the price of the stock is Rs.25 and the exercise price is Rs.26?

A.

Rs.-1

B.

Rs 0

C.

Rs 1

D.

Rs 25

Answer» b. Rs 0

Note: The above multiple-choice question is for all general and Competitive Exams in India.