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Basic Question 6 of 9

If you own a deep-in-the-money call option on non-dividend-paying stock, you will MOST LIKELY NOT ______.

A. sell the option
B. keep the option until later to see if the stock price will go up further
C. exercise the option

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

calculate the no-arbitrage values of European and American options using a two-period binomial model;

identify an arbitrage opportunity involving options and describe the related arbitrage;

CFA® 2025 Level II Curriculum, Volume 5, Module 32.