If an American-Style Option Possesses Time Value on Any Day

question 44

True/False

If an American-style option possesses time value on any day up to expiration date, the option holder would get more by selling it than exercising it.

---

Definitions:

Voidable

Describes a contract or agreement that can be legally declared invalid but remains enforceable until an action is taken to void it.

Unlicensed Party

An individual or entity operating without the required legal permission or certification for certain activities or services.

Enforceable

Able to be enforced or supported through legal proceedings or by legal power.

Performance

The act of fulfilling or carrying out a task, duty, or function as required by contract or expectation.