Before Expiration,the Time Value of a Call Option Is Equal

question 48

Multiple Choice

Before expiration,the time value of a call option is equal to

• A) zero.
• B) the actual call price minus the intrinsic value of the call.
• C) the intrinsic value of the call.
• D) the actual call price plus the intrinsic value of the call.
• E) none of these.

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Definitions:

Guideline

A rule or piece of advice that suggests how something should be done or what actions are most likely to achieve a specific goal.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes.

Activity

Any action or task undertaken by individuals or groups, often aimed at achieving a specific goal or outcome.

Centralization

Refers to the concentration of decision-making authority at the top levels of an organizational hierarchy.