At Expiration,the Time Value of an at the Money Put

question 3

Multiple Choice

At expiration,the time value of an at the money put option is always

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

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Definitions:

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.

Workers

Individuals who perform tasks or jobs for pay, ranging from manual labor to professional occupations.

Units

In economics, units refer to the quantifiable measures used to express the quantity of an item, such as pieces, kilograms, liters, etc., used in transactions or production.

Total Cost

The complete cost of production, encompassing both fixed and variable costs, for a good or service.