Other things equal, after an option is created, its:
A) time value approaches zero as time passes.
B) time value increases into its expiration date.
C) value moves inversely with the volatility of the underlying stock.
D) value will be zero whenever it is out of the money.

Question

Quizplus · Accepted Answer

As an option approaches its expiration date, its time value decreases, a phenomenon known as time decay.

Other Things Equal, After an Option Is Created, Its