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

question 78

Multiple Choice

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

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

---

Definitions:

Firms

Business entities engaged in commercial, industrial, or professional activities, with the goal of earning a profit.

College Textbook Publishers

Companies specialized in publishing textbooks tailored for college and university level courses.

Cutthroat Competition

A situation in which businesses aggressively compete with one another by cutting prices and attempting to eliminate competitors in the market.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, leading to limited competition.