At expiration, the value of an option:
A) is greater than the intrinsic value.
B) is less than the intrinsic value.
C) is equal to the time value of the option.
D) is equal to the intrinsic value.

Question

Quizplus · Accepted Answer

The value of an option at expiration is equal to the intrinsic value, which is the difference between the strike price and the underlying asset's price. Any remaining time value will have decayed to zero at expiration. Therefore, choice D is the correct answer.

At Expiration, the Value of an Option