At expiration, the time value of an at-the-money call option is always
A) positive.
B) equal to zero.
C) negative.
D) equal to the stock price minus the exercise price.

Question

Quizplus · Accepted Answer

At expiration, the time value of an at-the-money call option is always equal to zero because there is no remaining time for the option to gain value from potential price movements of the underlying asset.

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