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

question 34

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)price
• C)trade restrictions
• D)time
• E)none of the above

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Definitions:

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