In Reality, an Option's Value Will Equal Its Intrinsic Value

question 85

Multiple Choice

In reality, an option's value will equal its intrinsic value only at expiration. At all other times, the option's premium or price will exceed its intrinsic value. A major reason for this is/are _____________.

• A) marketability
• B) future expectations
• C) trade restrictions
• D) brand

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Definitions:

Gorillas

Large apes native to the forests of central Sub-Saharan Africa and considered the largest living primates.

Modern Humans

Homo sapiens, the species to which all existing human beings belong, characterized by a highly developed brain, capable of abstract thinking, language, and the creation of complex tools and societies.

Brain Size

Refers to the volume or weight of the brain, often considered in relation to body size among species and associated with various cognitive and neurological functions.

Neanderthals

Neanderthals were an extinct species or subspecies of archaic humans who lived in Eurasia until approximately 40,000 years ago.