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What is reason for an investor to pay for a zero intrinsic

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Reference no: EM132908836

Problem 1: What is the reason for an investor to pay for a zero intrinsic value option?

a. there is always a chance that the strike price for options with different maturities will increase

b. there is always a chance that the spot rate will move before expiration putting the option in the money

c. investors are typically not investing in zero intrinsic value options

d. the premiums for zero intrinsic value options are very small

Reference no: EM132908836

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