As an Option Nears Its Expiration Date, the Size of the Premium

question 85

Multiple Choice

As an option nears its expiration date, the size of the premium approaches

• A)zero.
• B)infinity.
• C)its intrinsic value.
• D)an amount which varies, depending on prevailing market interest rates on the expiration date.

---

Definitions:

Employee Development

Programs and practices aimed at improving the knowledge, skills, and abilities of employees to meet current and future job demands.

Independence

The condition or quality of being self-reliant and free from the control or influence of others.

Trustworthiness

The quality of being reliable, dependable, and deserving of trust.

Demonstrates Flexibility

The ability to adapt to new, different, or changing requirements and situations with an open mind and an innovative approach.