Before Expiration, the Time Value of an In-The-Money Put Option

question 78

Multiple Choice

Before expiration, the time value of an in-the-money put option is always

• A)equal to zero.
• B)negative.
• C)positive.
• D)equal to the stock price minus the exercise price.

---

Definitions:

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person, managing and distributing the estate's assets according to the will or, if there is no will, in accordance with state laws.

Administrator

The personal representative appointed by a probate court to settle the estate of a deceased person who died intestate (without leaving a valid will).

Decedent

A legal term used to refer to a person who has died, especially concerning their estate or possessions left behind.

Executor

A person named in a will who is charged with managing the estate of the deceased, ensuring that their wishes are carried out according to the will.