The Price of an Option Is Always Somewhat Greater Than

question 87

True/False

The price of an option is always somewhat greater than its intrinsic value, since there is always some chance that the intrinsic value will rise between the present and the expiration date.

---

Definitions:

Operating Income

The profit realized from a business's operations after deducting operating expenses from gross profit.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Selling Price

The price at which an item or service is offered to buyers.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.