The option price is a reflection of the option's:
A) Premium.
B) Intrinsic value.
C) Time value.
D) b and c only.
E) None of the above.

Name: The option price is a reflection of the option's: A) Premium. B) Intrinsic value. C) Time value. D) b and c only. E) None of the above.
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Question

Quizplus · Accepted Answer

The option price reflects both the intrinsic value, which is the difference between the option's strike price and the underlying asset's current price, and the time value, which accounts for the remaining time until expiration.

The Option Price Is a Reflection of the Option's