Can the lower bound of an option be negative?

1 answer

Answer

1209545

2026-04-13 09:40

+ Follow

No, the lower bound of an option cannot be negative. For a call option, the minimum value is zero since the holder would not exercise it if the stock price is below the strike price. Similarly, a put option's value cannot fall below zero because the holder can choose not to exercise it if the stock price exceeds the strike price. Thus, both types of options have a lower bound of zero.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.