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

question 95

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 the above.

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Definitions:

Atomic Number

The number of protons in the nucleus of an atom, determining the chemical properties of an element and its place in the periodic table.

Helium

A chemical element with symbol He and atomic number 2, known for being a lightweight, inert gas widely used in balloons and as a coolant.

Neon

A chemical element with the symbol Ne and atomic number 10, it is a colorless, odorless, inert monatomic gas under standard conditions, with about two-thirds the density of air and is used in fluorescent lamps and signs.

Argon

A noble gas element with the atomic number 18, colorless, odorless, and inert, making up about 1% of the Earth's atmosphere.