The reason why call options with exercise prices higher than the price of the underlying stock sell for positive prices is that there is a chance that the option will expire. While it is always a gamble, some investors are willing to pay a positive price in exchange for a chance of a positive payoff.
Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?
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Academic.Tips. (2021) 'Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices'. 15 June.
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Academic.Tips. (2021, June 15). Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices? https://academic.tips/question/why-do-call-options-with-exercise-prices-greater-than-the-price-of-the-underlying-stock-sell-for-positive-prices/
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Academic.Tips. 2021. "Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?" June 15, 2021. https://academic.tips/question/why-do-call-options-with-exercise-prices-greater-than-the-price-of-the-underlying-stock-sell-for-positive-prices/.
1. Academic.Tips. "Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?" June 15, 2021. https://academic.tips/question/why-do-call-options-with-exercise-prices-greater-than-the-price-of-the-underlying-stock-sell-for-positive-prices/.
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Academic.Tips. "Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?" June 15, 2021. https://academic.tips/question/why-do-call-options-with-exercise-prices-greater-than-the-price-of-the-underlying-stock-sell-for-positive-prices/.
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"Why do call options with exercise prices greater than the price of the underlying stock sell for positive prices?" Academic.Tips, 15 June 2021, academic.tips/question/why-do-call-options-with-exercise-prices-greater-than-the-price-of-the-underlying-stock-sell-for-positive-prices/.
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