T or F The option premium is the price the call buyer will pay to the option seller if the option is exercised

Finance Dec 21, 2020

T or F

The option premium is the price the call buyer will pay to the option seller if the option is exercised

Expert Solution

rate positively .

statement is FALSE

Option premium is the the price call buyer pay to call option seller even if the option is exercised or not. This is price for the right to buy at exercise price.

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