Answer-first summary for fast verification
Answer: Underlying asset's spot price.
The correct answer is **A** because the upper no-arbitrage bound of a call option's price is the underlying asset's spot price. - **Option B** is incorrect because it describes the lower bound (not the upper bound) of a call option's price, which involves the underlying asset's spot price minus (not plus) the present value of its exercise price or zero, whichever is greater. - **Option C** is also incorrect because it describes the lower bound of a call option's price, not the upper bound. The upper bound is strictly the underlying asset's spot price.
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The upper bound of a call option's value is the:
A
Underlying asset's spot price.
B
Underlying asset's spot price plus the present value of its exercise price or zero, whichever is greater.
C
Underlying asset's spot price minus the present value of its exercise price or zero, whichever is greater.
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