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

Question

Quizplus · Accepted Answer

At expiration, the time value of an in-the-money call option will have no value because the option will either be exercised or allowed to expire worthless. Therefore, the only value remaining will be the intrinsic value, which is the difference between the stock price and exercise price.

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