mnieman

kurupt, options are always valued more than zero or otherwise they can't be sold. But the pay off's may be zero or negative all the time.

Unless the markets see intrinsic value or time value, options cannot be priced. If they are not readily in the money, they have atleast time value -- hope that the price of the underlying rises before the option expires.

hth

sgupta0827

of course, minimum value of the option anytime (any spot, any rates, any vol) during the life can theoretically go to zero. the value of the option at given time, given spot, given rate has lower bound equal to ... you know...

JRossSter

Is the answer C?