Question 822 option, sunk cost, no explanation
When does a European option's last-traded market price become a sunk cost?
(a) immediately after the option purchase date.
(b) After the option matures but only if it is exercised.
(c) After the option matures but only if it lapses and is not exercised.
(d) After the option matures, regardless of whether it is exercised or not.
(e) The option price is never a sunk cost.
Copyright © 2014 Keith Woodward