Which of the Following Statements Is TRUE

question 14

Multiple Choice

Which of the following statements is TRUE?

• A) At low market prices there is greater chance that a call option will be exercised.
• B) The difference between the current payoff and the expiry payoff is the time value.
• C) Time value is at a peak when the option is in- the- money.
• D) When market prices are high the buyer of a call option is paying an insignificant amount for intrinsic value.

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