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

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

Quizplus · Accepted Answer

At expiration, an option's time value decreases to zero, leaving only the intrinsic value (if there is any). Therefore, option C is correct.

At Expiration, the Time Value of an Option