Selling an Option Is Generally More Valuable Than Exercising the Option

question 42

Multiple Choice

Selling an option is generally more valuable than exercising the option because of the option's:

• A)riskless value.
• B)intrinsic value.
• C)standard deviation.
• D)exercise price.
• E)time premium.

---

Definitions:

Auricular

Pertaining to the ear or hearing; sometimes also referring to structures resembling an ear or earlobe.

Mentalis Muscles

A pair of muscles at the tip of the chin, responsible for protruding the lower lip, contributing to facial expressions like pouting.

Dimple

A small, natural indentation in the skin, often located on the cheek or chin, usually considered a trait of attractiveness.

Digastric Muscle

A small muscle located under the jaw, which acts to open the mouth and elevate the hyoid bone.