The exercise value is the positive difference between the current price of the stock and the strike...

Question

The exercise value is the positive difference between the current price of the stock and the strike price. The exercise value is zero if the stock’s price is below the strike price.
True or false, then why.
Thanks much,
Mike

David · Accepted Answer

Question: 
The exercise value is the positive difference between the current price of the stock and the strike 
price. The exercise value is zero if the stock’s price is below the strike price. True or false, then 
why. 
Solution: 
The above statement is true.

The exercise value is the positive difference between the current price of the stock and the strike price. The exercise value is zero if the stock’s price is below the strike price. True or false,...

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