1)Would a call option be exercised at expiry if S < X where S is the...

Question

Question

1)Would a call option be exercised at expiry if S < X where S is the spot price of the underlying asset and X is the strike price of the option?

2) Would a put option be exercised at expiry if S > X

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Answer 1

Answer #1

1)Would a call option be exercised at expiry if S < X where S is the spot price of the underlying asset and X is the strike price of the option?

No.A call option can not be exercised at expiry if S < X A. call option can be exercised when spot price is greater than the strike price (S > X).

2) Would a put option be exercised at expiry if S > X

No a a put option can not be exercised at expiry if S > X. A put option can be exercised when spot price is smaller than the strike price (S < X).

Answer 2

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