minimum value of a European call option

[raffythebuggy]

Hi. Can someone explain this to me? Why does the minimum value have a max in it?
The minimum value of a European call option is max[, S − X / (1 + R)T].
Thanks!

 

[villnius]

Because the value cannot be less than zero. The value is the Max of (0, or S-X/(1+R)t).
If S-X/(1+R)t is less than 0, then the value is 0

 

[edupristine]

Agree with villnius