### Comment:
Yes that's correct. But there's a difference between the price of a call (what you pay to buy a call option) and the cost to exercise the call (option cost + strike price). The cost to exercise can be higher than the stock price itself, but you wouldn't pay $90 (x100) to buy a call on a stock currently worth $80, would you? If you would, why not just buy the stock itself and save yourself $10 (x100) since the stock never expires?

### REPLY:
My bad. Agreed. A long equity has limited downside. A call shouldn’t cost more than the stock because at that point your stock could go bankrupt and it would still be cheaper that the call.

### END.