The Price of an Option Is Always Somewhat Greater Than

question 87

True/False

The price of an option is always somewhat greater than its intrinsic value, since there is always some chance that the intrinsic value will rise between the present and the expiration date.

---

Definitions:

Title

A legal term referring to the rightful ownership of property, assets, or a formal position.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.

Provincial Responsibility

Areas of legal authority and obligation that are designated specifically to provincial governments rather than the national government in a federal system.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time.