please explain why Which of the following statements is correct? O Both the buyer...
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Which of the following statements is correct? O Both the buyer and the seller of an option have the obligation to post a margin. The intrinsic value of a call is always equal to (S - K) where S is the underlying asset price and K is the strike price. As the time-to-expiration increases (all else remaining unchanged), American calls and puts always become more valuable. Consider a call and a put which are both written on the same asset, and have the same strike price and the same time-to-maturity. It is possible that the call and the put are in-the-money at the same time
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please explain why