At Expiration, the Time Value of an In-The-Money Call Option

question 65

Multiple Choice

At expiration, the time value of an in-the-money call option is always

• A)equal to zero.
• B)positive.
• C)negative.
• D)equal to the stock price minus the exercise price.
• E)None of the options

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Definitions:

Z Test

This method tests if two populations' means differ, assuming known variances and a large sample size.

Group 1

A designation for the first cohort or category in an experimental or observational study, often used as a reference or control group.

Multinomial Population

A population in a statistical model where outcomes can fall into three or more categories.

Normal Population

A population in which the data follows a normal distribution, characterized by a bell-shaped curve.