At Expiration, the Value of an Option

question 25

Multiple Choice

At expiration, the value of an option:

• A) is greater than the intrinsic value.
• B) is less than the intrinsic value.
• C) is equal to the time value of the option.
• D) is equal to the intrinsic value.

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Definitions:

Coverage Begins

The specified date from which an insurance policy starts providing benefits or protection.

Insurance Agreement

A contract between an insurer and an insured, outlining coverage terms, conditions, and the scope of insurance protection.

Potential

Refers to the capacity or ability that something or someone has to develop, achieve, or become something more in the future.

Loss

The state of being deprived of or of being without something that one has had.