Prior to Expiration

question 46

Multiple Choice

Prior to expiration,

• A) the intrinsic value of a put option is greater than its actual value.
• B) the intrinsic value of a put option is always positive.
• C) the actual value of a put option is greater than the intrinsic value.
• D) the intrinsic value of a put option is always greater than its time value.

---

Definitions:

Costs of Issuing

Expenses associated with the issuance of stocks or bonds, including underwriting, legal, and registration fees.

Goodwill

An intangible asset that arises when a company is purchased for more than the fair value of its net identifiable assets, representing aspects like reputation, brand, and customer relationships.

Journal Entry

A record in accounting that represents a transaction, showing the accounts and amounts debited and credited, used to transfer values and maintain the ledger.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and shareholders' equity of a parent company and its subsidiaries.